Federal Reserve System
When and why was the FRS established?
The Federal Reserve System was established on December 23, 1913. It's main goal was to address banking panics. Also to:
- Furnish an elastic currency
- Afford means of rediscounting commercial paper
- To establish a more effective supervision of banking in the U.S.
The FRS is responsible for:
- Addressing banking panics
- It serves as the central bank for the U.S
- Conducting monetary policy
- Acting as a lender for the nation's banks
- Facilitating the collection and clearance of checks
- Acting as a fiscal agent for the United States Treasury
The unique structures include:
- A federal government agency, or the Board of Governors, in Washington DC
- 12 regional Reserve Banks