The Federal Reserve Bank Is The Central Bank Essay

2486 Words Jun 22nd, 2015 10 Pages
In the recent ten years, the economy of America has gained a sustained and stable growth with low inflation, and financial industry has made a great contribution to it. According to the financial expert’s saying from Chicago, the role of financial industry mainly displays in the strong ability of financial macro-control, effective regulation and access to loan financing is becoming easier and easier, the application of information technology in the financial sector is becoming wider and wider. (Dennis & Jakob, 2014) America 's financial industry has a very complete, standard and strict regulatory system. The government does not participate in the operation of the business, and banks are highly independent and have normal operation in accordance with market rules. In the meantime, the legislation and law enforcement is very strict, and supervision is very powerful. (Stefano & Kevin, 2013)
The regulation of U.S. central bank U.S. Banks have five regulatory bodies. The Federal Reserve Bank is the central bank which has the most important responsibility for monitoring banks’ operations in the financial system. The power of the Federal Reserve Bank is awarded by congress. The federal system was set up in 1913, according to the federal law, when the Federal Reserve Banks were established in 12 districts, and the operation of power is more dispersed. After several major reforms, the central banks become more centralized. The Fed 's board of directors is at the highest…

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