The Federal Reserve And Central Banking System - 1109 Words

Edith Deras-Fraijo Mr. Lauer Economics November 9, 2015 The Federal Reserve The Federal Reserve is the main banking system in the United States. It has 12 regional banks around the nation, its headquarters being located in Washington DC. The Federal Reserve (better known as the Fed) was established in 1913 by Congress in order to â€Å"provide the nation with a safer, more flexible, and more stable monetary and financial system† (federalreserve.gov). Although the Fed was created over a century ago, it is still a major influence in the banking systems today. The concept alone of a central banking system has been around long before the Federal Reserve Act of 1913 was passed. In 1791, Treasury Secretary Alexander Hamilton encouraged Congress to create the First Bank of the United States. Several Americans opposed of it, as they felt somewhat uncomfortable of one bank having all the power. After the bank’s 20 year term in 1811, Congress decided not to renew it by merely one vote. Afterwards there have been multiple other attempt s to create a central bank, but they have never succeeded in the long run. That is until The Federal Reserve Act of 1913. President Woodrow Wilson was the one who passed the famous Federal Reserve Act of 1913. If it had not been for the passing of this law, the United States may have never had a central bank, which is a vital part of our economy. The Fed is the thing that fixes our economy. Whether we like it or not, it willShow MoreRelatedCentral Banking System Of The Federal Reserve System1235 Words   |  5 PagesA Federal Reserve Bank is a regional bank of the Federal Reserve System, the central banking system of the United States. There are twelve Federal Reserve Systems, one for each of the twelve Federal Reserve Districts that were created by the Federal Reserve Act of 1913. The banks are jointly responsible for implementing the monetary policy set forth by the Federal Open Market Committee. The twelve Federal Reserve Systems are Federal Reserve Bank of Atlanta, Federal Rese rve Bank of Boston, FederalRead MoreThe Federal Reserve System And Central Banking System1592 Words   |  7 Pagesmoney and banking world, the two largest central banks are the Federal Reserve (Fed) and the European Central Bank (ECB). There are many things that make these two entities similar and many things that make them different. Both are effective in their own ways, but which one is more effective. Is one superior than the other? Which central banking entity is more accountable? Looking at the structure of these entities will only help us answer the questions. When it comes down to it, which central bankingRead MoreThe Federal Reserve Is The Central Banking System Of The United States1364 Words   |  6 Pageshe Federal Reserve is the central banking system of the United States, which controls the monetary policy of the US (Hubbard). When first conceived in 1913 its primary function was to protect banks, but, in part due to the Great Depression, the role the Federal Reserv e plays in the economy has evolved into something much more influential. Ben Bernanke, the Federal Reserve chair from 2006-2014, said in a speech in 2002 while he was still just a board member regarding the Federal Reserve’s role inRead MoreThe Federal Reserve System Is The Central Banking System Of The United States1459 Words   |  6 PagesIntroduction The Federal Reserve System is the central banking system of the United States. The Federal Reserve System is there to help out when a series of financial hardships and panics happen in our economy. One of the leading changes in the Fed system was the Great Depression. This put the economy in a lot of stress and the banking system in a crisis. There were three objectives for the monetary policy. The three objectives were to increase employment, target the discount rate, and monitorRead MoreThe Federal Reserve System Is The Central Banking System Of The United States987 Words   |  4 PagesThe Federal Reserve system is the central banking system of the United States. It was created because there were a series of panics in the U.S that needed to be controlled in the monetary system. The main points of this system that was created was to originally maximize employment, stabilize prices, and moderate long-term interest rates. It now does much more for example it supervises and regu lates banks, maintains the stability of the financial system and provides financial services to depositoryRead MoreThe Federal Reserve System Is The United States Central Bank1339 Words   |  6 PagesHayden Hill Macroeconomics Professor Gislason 27 April 2017 The Federal Reserve System The Federal Reserve System, also called â€Å"the FED†, is the United States central bank, a national institution which governs the production and distribution of money. It was created to provide the United States with a more secure and more stable financial structure. The Federal Reserve System has many responsibilities today. First, the FED controls U.S. monetary policy by altering the supply and demand of the economyRead MoreComparison of Us and Uk Banking Systems825 Words   |  4 Pagescreating a central banking systems of their own. The United States is one of these nations. The two nations have many similar banking objective and strategies on how to best achieve the objectives. These nations also differ greatly in some aspects of their banking philosophies. The currencies of both nations are strongly held around the world. Their monetary policies and bank regulations differ in some aspects, but both nations banking systems are held to high esteem worldwide. The bankin g systems of theRead MoreFederal Reserve System and Monetary Policy1263 Words   |  6 PagesFederal Reserve System and Monetary policy Amir Jahangir Federal Reserve System and Monetary policy Introduction United States Federal Reserve system, also known as Federal Reserve or simply â€Å"Fed† is the United States central banking system. The Federal Reserve took inception in 1913, after the adoption of the Federal Reserve Act. The United States Congress has mandated three macroeconomic objectives to the Federal Reserve. These are minimum levels of unemployment, prices stability andRead MoreHistory Of Central Banks Of America1546 Words   |  7 Pages05/01/2015 History of Central banks in America Even though central banks can improve a nation’s economy and are beneficial to governments, the central banks of America had a very controversial history. Even before the establishment of the Federal Reserve, banks were used by the public just as we use them today. Bank notes were in use during this time and they were backed up by the guarantee that they can be traded for either gold or silver on demand. The history of central banking in America dates backRead MoreThe Federal Reserve System Essay1075 Words   |  5 PagesThe Federal Reserve System The Federal Reserve System was founded by Congress in 1913 to be the central bank of the United States. The Federal Reserve System was founded to be a safer, more flexible, and more stable monetary financial system. Over the years, the role of the Federal Reserve Board and its influence on banking and the economy has increased. Today, the Federal Reserve Systems duties fall into four general categories. Firstly, the FED conducts the nations monetary policy. The FED