The Federal Reserve System
Morgan Hartzog, John Hall
Understanding The Banking System
What is the Federal Reserve System?
it is a centralized banking systemPresident Woodrow WilsonCreated in 1913Not controlled by the governmentAll national banks have to participateState banks are optionalDivisions are called Districts12 Districts2 arms of FED is Board of Governors and the District Federal Reserve Banks
The Functions of the Federal Reserve System
Federal Supervision- sets reserve requirements. Monetary Policy- It determins the amount of money in circulationand available for loans.Open Market Policy- it buys and sells the government securities(Treasury and Bill Bonds).Lending Standards- Sets the standards for consumer legislation dealing with lending and credit.Supplies Currency-