The Federal Reserve System: Principles and Practices, History of

The federal officialeral bear System, or Americas central bank, was created on declination 23, 1913. It has created and fulfilled many services for the government and people indoors the United States. These services include the regulation of financial institutions, maintaining of the payments schema and consumer protection laws, and conducting and overseeing monetary policy.

The feed has several unique features which sets it by from other financial institutions. In essence, the Fed is a de centralize, concentrate bank. It is composed of twelve different districts, each of which represents a designated contribution within the United States. Because the goals of the banks were to serve the individuals, these districts ensured that no bank would plump too large and powerful to overtake others while salve being responsive toward local community needs. After the immense Depression, Congress transferred power to the federal official Reserve Board in Washington D.C.; this made the Fed more of a centralized unit. Private corporations and individuals are still able to own shares--similar to stock--in the Fed. Thus, in private owned member banks are able to have rank input into the actions of the Fed and restrict the role of government. This all would not have been accomplished had it not been for a well-structured organization.

The structure of the Fed is indeed unique.



A seven-member Board of Governors controls the activities of the Fed. It also sets the policies for the Federal Reserve and its member banks to follow, and regulates certain operations of state-chartered member commercial banks. The Federal Open Market Committee regulates most of the decisions regarding the growth of the capital supply and interest rates; these are ways in which monetary policy is defined. These branches of the Federal Reserve System adjudge out most of the tasks given to the Fed.

The primary goal of the Fed is...

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