FEDERAL RESERVE SYSTEM

THE FEDERAL RESERVE SYSTEM HISTORY

• Established by the Federal Reserve Act
• Passed in late 1913
• Also called the "Fed"

PURPOSE

• The nations first true central bank
• Can lend to other banks in time of need
• Reorganized the federal banking system

MEMBER BANKS

• 12 regional federal reserve banks in USA
• all chartered by the national government
• Member banks of the "Fed"

FEDERAL RESERVE BOARD

• Appointed by the US president
• Supervised all federal reserve banks

SHORT-TERM LOANS

• Each of the regional federal banks allowed member banks to
• borrow money to meet short term demands

FEDERAL RESERVE NOTES

• National currency used in the US today
• Allows fed reserve system to regulate money in circulation