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I want to know the role and the functions of Federal Reserve Bank so will you please tell me?
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The Federal Reserve System is the central banking system of the United States. It was established with the enactment of the Federal Reserve Act in response to a series of financial panics that showed the need for central control of the monetary system if crises are to be avoided. Its duties have expanded over the years, and also include supervising and regulating banks, maintaining the stability of the financial system and providing financial services to depository institutions, the U.S. government, and foreign official institutions. The Fed conducts research into the economy and releases numerous publications, such as the Beige Book. The Federal Reserve's responsibilities fall into four general areas. Supervising and regulating banks and other important financial institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers Maintaining the stability of the financial system and containing systemic risk that may arise in financial markets. Conducting the nation's monetary policy by influencing money and credit conditions in the economy in pursuit of full employment and stable prices Providing certain financial services to the U.S. government, U.S. financial institutions, and foreign official institutions, and playing a major role in operating and overseeing the nation's payments systems It performs five general functions – Promotes the stability of the financial system and seeks to minimize and contain systemic risks through active monitoring and engagement in the U.S. and abroad; Promotes the safety and soundness of individual financial institutions and monitors their impact on the financial system as a whole; Conducts the nation’s monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy; Fosters payment and settlement system safety and efficiency through services to the banking industry and the U.S. government that facilitate U.S.-dollar transactions and payments; and Promotes consumer protection and community development through consumer-focused supervision and examination, research and analysis of emerging consumer issues and trends, community economic development activities, and the administration of consumer laws and regulations. Contact - 888-851-1920 (Phone), 877-766-8533 (TTY)
__________________ Answered By StudyChaCha Member |