THe Federal Reserve

            THE FEDERAL RESERVE SYSTEM CONTENTS I. Federal Reserve System-Overview 5 III. History of the Federal Reserve Act and Amendments to 8 IV. Structure of the System 9 V. Board of Governors 10 VI. Monetary Policy and Effects of on the Economy 12 VII. Final Thoughts SELECTED BIBLIOGRAPHY n INTRODUCTION Why do a report on the Federal Reserve System? This is a question I went over in my head while making a decision on the type of report to do, and what I wanted to learn more about and why. Over the past few years I have realized the impact that the Federal Government has on our economy, yet I never knew enough about the subject to understand why. While taking this Economics course it has brought so many things to my attention, especially since I see inflation, gas prices, and interest rates on the rise. It has given me a better understanding of the affect of the Government on the economy, the stock market, the interest rates, etc. Since the Federal Government has such a control over our Economy, I decided to tackle the subject of the Federal Reserve System and try to get a better understanding of the history, the structure, and the monetary policy of the power that it holds. THE FEDERAL RESERVE SYSTEM The Federal Reserve System is the central banking authority of the United States. It acts as a fiscal agent for the United States government and is custodian of the reserve accounts commercial banks, makes loans to commercial banks, and is authorized to issue Federal Reserve notes that constitute the entire supply of paper currency of the country. Created by the Federal Reserve Act of 1913, the 12 Federal Reserve banks, the Federal Open Market Committee, and the Federal Advisory Council, and since 1976, a Consumer Advisory Council which includes several thousand member banks.