The Federal Banking System

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The banking system is one of the most important things of our industries. A federal reserve bank is a regional bank of the Federal Reserve System. It also counts as the central banking system of the United States. It was created by the congress and it’s purpose was to provide the nation with a safer and more flexible monetary and financial system. It was designed to give an image of the economy and on economic activity in all parts of the nation. The Federal Reserve System is run by a board of governors and also the Chairman. It includes seven members all together. There are twelve regional Federal Reserve banks that help in controlling the money supply. These are located in Atlanta, Boston, Chicago, Cleveland, Dallas, Kansas City, Minneapolis, …show more content…
They are located in Washington D.C. The board of governors is charged with watching the Federal Reserve Banks. They are also responsible with helping with the monetary policy of The United States. The board has other policy responsibilities. Monetary Control Act of 1980 gives the Board the authority to set a requirement of from 8 percent to 14 percent. They made deposits and they traded accounts which made a third party and of up 9 percent on nonpersonal time deposits. There are seven members in the board of governors and they are all nominated by the president and they are confirmed by the senate. A complete term of the board of governors is 14 years. A term starts every 2 months on February 1st. William Martin Jr. served as a member and the chairman of the board of governors for about 20 years because he had to be a chairman to complete someone else's …show more content…
The United States banking system is a big part of the U.S that makes up our economy and has our nation work. One thing the Central Banking system does for the United States is it helps to stop banking crises. Another thing that our Central Banks do to help is they manage the growth of the national money stocks. Something else that our Central Banks do for the united states is they help regulate commercial banks.
One big thing that our Central Banks do for us is help with keeping our nation out of banking crises. This involves the central banks to go out and have addition cash in reserves to commercial banks that risk having failure due to a big amount of reserve losses. A example of this is the great depression where no one had money to buy anything and they lost all of their savings and money they had. The way that the central bank helps this is more money in reserves in case another one of these problems happen to give money out to the public. To keep the money safe and ready the money is stored and after a bank run has started money cannot be withdrawled

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