Federal Reserve System Essay

5518 Words Dec 14th, 2014 23 Pages
FEDERAL STATE-FUNDED EDUCATIONAL INSTITUTION OF HIGHER PROFESSIONAL EDUCATION
FINANCIAL UNIVERSITY UNDER THE GOVERNMENT OF THE RUSSIAN FEDERATION

Department of Macroeconomic

Research paper

“Banking system and its role in national economy of the USA”

Prepared by Yusifova Sevindzh Supervisor: Orusova O. V. Department of Macroeconomics

Moscow-2014 Contents Introduction 1. Federal Reserve System as the central banking system in the USA

1.1. The essence of Federal Reserve System and its main functions 1.2. Federal Deposit Insurance Corporation and Member Banks 1.3. The
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It is composed of a central government agency(Board of Governors) in Washington D.C., 12 regional Reserve Banks, located in major cities around the nation. The Federal Reserve’s income comes from the interest on U.S. government securities that it has acquired through open market operations. Other sources of income are the interest on foreign currency investments. Once the Federal Reserve has paid its expenses, it then turns over the rest of its earnings to the U.S. Treasury. The Federal Reserve’s accountability is to Congress. Legislation requires that the Fed* report annually on its activities to the Speaker of the House of Representatives and twice annually on its plans for monetary policy to the banking committees of Congress. To ensure financial accountability, the financial statements of the Federal
Reserve Banks are audited annually by an independent outside auditor.

1. Federal Reserve System as banking system in the USA

1.1. The essence of Federal Reserve System and its main function The Federal Reserve System (Fed) is the central bank of the US. It constitutes a Board of Governors and 12 regional Reserve Banks. The Board of Governors is made up of seven members appointed by the US President and confirmed by the Senate. Only one member of the Board is

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