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Organizations Involved In The Federal Reserve Banking System

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Before the Fed system came along, America was financially very unstable. Some people did not want a central bank because they thought it was a model of England. There were two tries before the central bank was a success. J.P. Morgan forced action on a banking plan because the country was going through a crisis that could push the economy over the edge. Finally, based on an act of Congress in 1913 by President Woodrow Wilson, the Federal Reserve Banking System (The Fed) was created. The Federal Reserve Banking System (Fed) is the central bank of the United States. Its primary purpose is to improve the stability of America's banking system. It also supervises financial institutions, provides services to the U.S. government and foreign official …show more content…

Louis, Missouri; Kansas City, Missouri; Minneapolis, Minnesota; Dallas, Texas; and San Francisco, California. District borders do not often align with state lines since they were established in 1913 based on the dominant trading regions and associated economic factors. There are three organizations involved in the Federal Reserve System: the Board of Governors, the Federal Reserve Banks (Reserve Banks), and the Federal Open Market Committee (FOMC). Every Reserve Bank in a given area acquires statistics and other information on local companies and community requirements. In addition to supervising the 12 Reserve Banks, the Board of Governors is a federal institution that answers directly to Congress and offers overall guidelines for the System. Federal Reserve Banks (Reserve Banks) examine state member banks, lend to depository institutions, and provide key financial services. The FOMC then considers such information when making monetary policy decisions. The three of them together make choices that support the stability of the American financial system and the state of the nation's

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