Essay On The Federal Reserve System

Reviewing The Federal Reserve System It is believed that The Federal Reserve System contributed to the failure of the Silicon Valley Bank because it lacked an effective structure. The framework and systems of The Federal Reserve System has been reviewed to improve the efficiency and effectiveness. The Federal Reserve System is defined as “the central bank of the United States, whose main job is to control our rate of monetary growth” (Slavin 2020). Under the supervision of The Federal Reserve System, the Silicon Valley Bank failed. According to a report by WHO, “a report examines the factors that contributed to the failure of Silicon Valley Bank. The report focuses on the role of the Federal Reserve, which was the primary federal

The first job is to conduct monetary policy. This is known to be the most important job of The Federal Reserve System. It controls the rate of money supply growth and influences the economy's growth as a whole. The second job of The Federal Reserve System is “to serve as a lender of last resort to commercial banks, savings banks, savings and loan associations, and credit unions” (Slavin 2020). For example, if a commercial bank needed a loan or a lender, then The Federal Reserve System could help. The third job of The Federal Reserve System is to issue currency. Currency refers to the physical coin or paper of money that serves in exchange. It is important for currency to be regulated in order to make sure monetary exchanges are even. The fourth job of The Federal Reserve System is to provide banking services to the United States government. The final job is to “supervise and regulate our financial institutions” (Slavin 2020). The jobs of The Federal Reserve System are being reviewed to “to improve the speed, force, and agility of supervision”(Michael 2023). With The Federal Reserve System performing several different jobs, it is important that the jobs are organized and run as effectively as