Federal Reserve Central Banking Of United States

The Central Banking System of the United States is known as The Federal Reserve. It was created in 1913, as a private banking system and was composed of several units. This banking system was created through a Federal Reserve Act, on 23rd December 1913.

The Federal Reserve consists of:
(a) Board Of Governors, who were appointed by the President. (b) The Federal Open Market Committee (c) Twelve Regional Reserve Banks, that was located in major Cities of the United States. (d) Other Private member banks (e) Other Advisory Councils.

It was November 16th, 1914, when the Federal Reserve started its operations for the first time.The main aim of the reserve was to provide steady supply of currency, which were issued to the Reserve Banks. The Reserve which was composed of several other components had different financial status.

Federal Reserve System, consists of several units that are considered to be independent federal government agency.The Board of Governors of the Federal Reserve do not receive any kind of funding from Congress and the terms of the seven members of the Board span multiple presidential and congressional terms. Once a member of the Board is found in acts that are against the policies, he may be removed by the President.

The Board Of Governors of the Federal reserve have a responsible position.The main responsibility of the members of the Board is to make an annual report about the opearations of the board,a nd also the formulation of the monetary policy of the Government.They are also responsible for the supervision and regulation of the opeartions of the banking system.

Today Ben Bernanke serves as the Chairman of the Board of Governors of the Federal Reserve System. The Federal Reserve System is considered to be the third try at a central banking system in the United States. The First Bank of the United States (1791-1811) and the Second Bank of the United States (1816-1836), are known to each have twenty five charters.Both these are known to have issues different currencies and also other kinds of commercial loans.The banks had to face many kinds of oppositions, during its initaial days.People thought that these banks supported the business class only.

The most important work of the Federal Reserve system is the implementation of the monetary policy.This policy is implemented keeping in mind, the federal funds rates, which is the rate that is charged by different banks, over the reserves that are held by the banks.This rate is usually determined by the market. Wikipedia