background preloader

Wikis

Facebook Twitter

Wikipedia. The Federal Reserve. The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central banking system of the United States.

The Federal Reserve

It was created on December 23, 1913, with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907.[2][3][4][5][6][7] Over time, the roles and responsibilities of the Federal Reserve System have expanded, and its structure has evolved.[3][8] Events such as the Great Depression were major factors leading to changes in the system.[9] The U.S. The authority of the Federal Reserve System is derived from statutes enacted by the U.S. Congress and the System is subject to congressional oversight. The members of the Board of Governors, including its chair and vice-chair, are chosen by the President and confirmed by the Senate. US Treasury Securities.

Backing of US currency[edit] The Congress has specified that Federal Reserve Banks must hold collateral equal in value to the Federal Reserve notes that the Federal Reserve Bank puts into circulation.

US Treasury Securities

This collateral is chiefly held in the form of U.S. Treasury debt, federal agency, and government-sponsored enterprise securities.[1] History[edit]