Federal Reserve Benefits

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The Federal Reserve is the central bank of the United States, and was formed in 1913 with the creation of the Federal Reserve Act after a series of financial panics. It consists of a presidentially appointed Board of Governors, the Federal Open Market Committee, and twelve regional Reserve Banks. Its purposes include upholding the monetary policy, supervising and regulating banks, maintaining the stability of the financial system, and providing financial services to the government and other foreign and local offices. The Federal Reserve is a crucial part to the functionality and the stability of the overall United States Government. To begin, the Federal reserve is made up of twelve different Regional Banks. These banks are located in Atlanta,…show more content…
Finally, the Federal Reserve is a crucial part of the United States government. It helps keep order within the nation 's monetary system. For example, before the Federal Reserve, there were hundreds of different currencies being used throughout the US. Currencies could be handed out by anyone, even drug stores had their own currency, and this caused many economic problems. However, when the Reserve was created, a single form of currency was put into use and much simplified they financial system. The Federal Reserve is also important because it provides payments to many banks, in case that bank should run out of money, which also helps to prevent further financial crisis. It also helps to prevent inflation, creating a more stable market so that consumers can continue to make general and long-term purchases without worrying if spending money will eventually cause an economic crisis. These are just a few of the ways that the Reserve helps sustain the US financial market. Overall, the Federal Reserve provides stability and simplicity to the economy, and therefore is an essential part of the United States government. In conclusion, the Federal Reserve is necessary to the government, providing further functionality and stability to the US economy. It is made up of a Board of Governors, the Federal Open Market Committee, and twelve Regional Reserve Banks. It is the central bank of the United States, and is in charge of controlling the monetary system and working to prevent financially induced economic panics. The Federal Reserve was created with the purpose of further aiding the economy, and over a century later it is still one of the reasons that our government can function

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