Explore BrainMass
Share

The Federal Reserve

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Federal Reserve

Describe the history of the Federal Reserve System (the Fed), and not central banking in general. What makes the Fed unique among central banks? Include an explanation of all the tools the Fed uses to contract and expand the economy using money supply and interest rates.

Your case should have an INTRODUCTION that states a thesis or point that you are making, a BODY that explains each point and gives examples, and a CONCLUSION that sums up the case and restates the thesis.

© BrainMass Inc. brainmass.com October 25, 2018, 5:11 am ad1c9bdddf
https://brainmass.com/business/interest-rates/the-federal-reserve-410254

Solution Preview

Introduction

Banks work because of the trust given to them by depositors. For a wider scope, the Federal Reserve serves as a catalyst of economic growth.

The Federal Reserve System

The Federal Reserve Act of 1913, passed by the United States Congress, established the nation's central banking system-the Federal Reserve. The Federal Reserve was not the first central bank in the nation's history, but it was the most powerful and expansive. As such, the Federal Reserve Act could be considered a sum of all prior efforts to provide the US with a central bank. The bank was intended to deliver on an elastic currency system, circulate a Federal Reserve note, and serve to regulate and monitor the country's credit and financial system in the best interest of the American people (Wise Geek, 2012).

Wise Geek further clarified that "at the time the act was signed into law by President Woodrow Wilson, on the eve of December 23, 1913, the Federal Reserve Act was the first major act of law which sought to create a ...

Solution Summary

This solution traces the origin and history of the Federal Reserve.

$2.19
See Also This Related BrainMass Solution

Federal Reserve

Please explain in detail the Federal Reserve's Interest Rate Policy and Economic Recovery. If you provide information from somewhere else please give me the reference so that I can dig deeper to better understand. Thanks

View Full Posting Details