This bank was accepted because it was a decentralized central bank that balanced the interests of private banks and populist feeling. Before the new bank could start its operations, it had to build a system that adhered to the law and was stable at the same time. On November 16, 1914, the central bank was open for business. .
To better understand the Federal Reserve System it is important know the structure of it. There is a network of 12 Federal Reserve Banks and 25 branches that make up the Federal Reserve System, and they are all monitored by the Board of Governors in Washington D.C. The Reserve Banks when put together make up the central bank. These banks serve the US Treasury and the public, indirectly. The Reserve Bank stores currency and coins, processes checks, and processes electronic payments. Reserve Banks also watch over commercial banks and handle the Treasury payments for the US government. The Federal Reserve is independent from the rest of the government. As long as it stays within its designated authority by Congress, it has the freedom to for determining the nation's monetary policy. Every Reserve Bank has a board of directors who oversee activities at the District bank. Reserve Banks all conduct research on the economy to see trends and the effects of their policies that are put into affect. This research is important to the economy and is vital to policymaking, and supports Reserve Bank presidents who attend meeting of the Federal Open Market Committee (FOMC). Each part f the Federal Reserve: the Board of Governors, the FOMC, and the Reserve Banks all work together to achieve the FRS's three main responsibilities. The three responsibilities are: conducting monetary policy, supervising banks, and providing financial services. When these three powers work together the economy of the United States is well balanced and organized. .
The most important aspect of the Federal Reserve is its' use of monetary policy on the economy.
