Federal Reserve System
Essay title: Federal Reserve System
Although the name the Federal Reserve System sounds governmentally controlled, that assumption of conducting is false. The FRS is independently within the outskirts of the government. Final decisions within the board are not concluded by the president, but the Federal system allows for a review by Congress. The FRS will annually report to Congress basically to inform them on the status of their work in progress. So the FRS is clearly established and controlled by themselves within the guidelines and restrictions by government.
The forming of the structure had 2 goals. One was to; “serve as lender-of-last-resort in times of crisis. Secondly to provide a national currency that would expand and contract as needed. It all started during the Banking Panic of 1907, it was known and still is known today as the worst banking deficit of the 4 in the previous 34 years. Abram P. Andrew was assigned in 1908 to study all the worlds banking problems. Upon this he sorted out thousands of documents allowing him to successfully provide descriptions of each bank during this time. After such research, it was shown that two-thirds of the banks in the country were hard for cash. Meaning banks were searching ways to find money to continue distributing. So what did this due to the economy? Both men and woman lost their jobs, banks firms went into bankruptcy and import and export trading values were stopped. The credit within the economy was ceased and unable to operate. Now, here we are with the FRS which helps regulate these issues. This system consists of seven boards of governors and twelve districts.
The members on the board when signed are appointed by the president to serve a 14-year term. Only one member of the board can be selected to the twelve Federal Reserve districts.
Board of Governors of the Federal Reserve System, Washington, D.C.
Federal Reserve Bank city
Federal Reserve Branch city, by District:
Buffalo
Cincinnati, Pittsburgh
Baltimore, Charlotte
Birmingham, Jacksonville, Miami, Nashville, New Orleans
Detroit
Little Rock, Louisville, Memphis
Helena
Denver, Oklahoma City, Omaha
El Paso, Houston, San Antonio
Los Angeles, Portland, Salt Lake City, Seattle
These twelve districts; Atlanta, Boston, Chicago, Cleveland, Dallas, Kansas City, Minneapolis, New-York, Philadelphia, Richmond, San Francisco and St. Louis are the major locations for the FRS banking. Members of the board are responsible for many things