The Federal Reserve System ( Frs ) Essay

1505 Words Nov 22nd, 2016 7 Pages
The United States of America has one of the most stable economies in the world. Reason being is due to the strong central bank that Congress established in 1914, known as the Federal Reserve System (FRS). The Federal Reserve System is composed of a central government, the Board of Governors, in Washington. The FRS has an interesting origin and does a variety of tasks in order to make the economy function properly. The Federal Reserve System was chartered in 1913 to provide the US with a safer, and more stable monetary and financial system. Today, the Federal Reserve 's jobs are managing the nation 's monetary policy by having an influence on credit and money conditions in the economy in hope of achieving full employment and stable price levels. The FRS also tries promoting the stability of the financial system, providing banking services to depository institutions and the federal government, and making sure that consumers have enough information and just treatment in their interactions with banks. The Federal Reserve System can be broken down into five sections to better understand it: the history and origin, structure, its use monetary policy, its job as a bank supervisor, and the financial services it provides.
The present central bank was established in 1914, but other attempts were made earlier in the history of the US that were less successful. The first attempt was in 1791 when Treasury Secretary Alexander Hamilton urged Congress to establish a central bank. This bank…

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