FEDERAL RESERVE SYSTEM

Federal Reserve System

Federal Reserve System

Introduction

It is the responsibility of the Federal Reserve System to make sure that there is stability in the banking system and also to make sure that the political pressures that are being created are short term and are out of the monetary policies. The system of Federal Reserve was created by the congress of the United States and is signed by the president named Woodrow Wilson in the year 1913. The system of Federal Reserve comprises of the seven members who are responsible for governing the board and it also includes 12 banks of Federal Reserve which have twenty five branches. These branches tend to share responsibilities that are mandatory to follow (Wells, 2004).

The system of Federal Reserve is known as an independent unit formed by the government in order to self fund its numerous operations. The system of Federal Reserve is structured to meet both the private and the public aspects. The system of Federal Reserve has components that are subjected to the numerous levels pf audit and review and it is ultimately accountable to the congress of the United States.

This paper discusses the Federal Revere System and the aspects associated to it. Discussion

Roles of the 12 Federal Reserve Banks It is the responsibility of the twelve Federal Reserve Banks to regulate and supervise certain activities of the financial institutions. They are also responsible for providing the services to the deposit institutions and the central government. The Federal Reserve banks makes sure that every consumer receives information adequately and treats their transactions in a fair way with in the banking sector. It consists of the Board of Governors, twelve regional Federal Reserve Banks and a variety of member banks and other institutions. Because the member banks at the same time the owners ...