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Comparison of Two Federal Reserve Banks

A Comparison of Two Federal Reserve Banks

Introduction: Federal Reserve Functions

The Federal Reserve System is the central bank of the United States. It was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded. Today, the federal Reserve's duties fall into fall into four general areas:

1. Conducting the nation's monetary policy by influencing the money and credit conditions in the economy in pursuit of full employment and stable prices;

2. Supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers;

3. Maintaining the stability of the financial system and containing systemic risk that may arise in financial markets; and

4. Providing certain financial services to the U.S. government, to the public, to financial institutions, and to foreign official institutions, including playing a major role in operating the nation's payments system (Overview, 1997).

The Federal Reserve System has a structure designed by Congress to give it a broad perspective on the economy and on economic activity in all parts of the nation. It is a federal system, composed basically of a central, governmental agency, the Board of Governors in Washington, D.C., and twelve regional Federal Reserve Banks, located in major cities throughout the nation. These components share responsibility for supervising and regulating certain financial institutions and activities; for providing banking services to depository institutions and to the federal government; and for ensuring that consumers receive adequate information and fair treatment in their business with the banking system (Overview, 1997).

Boards of directors of the Reserve Banks and Branches provide the Federal Reserve System with a wealt...

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Comparison of Two Federal Reserve Banks. (1969, December 31). In LotsofEssays.com. Retrieved 11:05, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1691880.html