Federal Reserve System Case Study

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The Federal Reserve System was established in 1913 by the Federal Reserve Act to improve the U.S banking after the crises of the Wall Street Panic of 1907 that caused financial ruin for much of the country. Therefore, the main purpose of the Federal Reserve system was to administer banking activities to assure that everything is stable and as the economy changes it would not ruin the banking industry. However, as time passed the Fed has obtained new responsibilities, which have been broken down in 3 sections and those are:
1. The Fed should direct the monetary policy of the U.S. In doing so it will, “promote employment, stable prices, and moderate long-term interest rates.” In order to achieve such requests the Fed will have to change the
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