our goal was to: Describe the creation of the Federal Reserve System and its rol
ID: 1167994 • Letter: O
Question
our goal was to:
Describe the creation of the Federal Reserve System and its role as agent and bank regulator;
Distinguish between various deposit instrument and regulations;
Define and describe negotiable instruments;
Explain how banks post checks to accounts and bank security measures against fraud;
Identify basic loan categories;
Examine the objectives of funds management, including asset/liability management and bank investments.
Define the characteristics of commercial banks and thrift institutions.
Describe the types of risks incurred by financial institutions.
write one paragraph
Choose one of the goals and describe in specific terms what you learned or discovered about this specific area of banking. How might it help you in your personal or professional life?
Explanation / Answer
Federal Reserve came into existence on December 23, 1913, after the enactment of the Federal Reserve Act, mainly in response to a series of large financial panics, particularly the one in 1907. The roles and responsibilities of Federal Reserve have evolved over time. For example The Great Depression of 1930s led to many changes in the system.
The Federal Reserve System is the central bank of the United States. The Fed is unique and apex institution of the United States of America and it’s a banker's bank which does not conduct commercial banking activities. Its aim is to attain stable economic growth in the nation, and through its actions, controls the flow of money by regulating the monetary policy and credit in the economy.
Specifically, the Fed is responsible for:
The Federal Reserve consists of the Board of Governors, the Federal Open Market Committee, 12 Federal Reserve Banks, 25 branches, member financial institutions, and advisory committees.
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