Federal Reserve Act

Lynn Sasser February 10,2017 Summary of Legislations the National Banking Act of 1863：In 1863, the United States passed the National Bank Act, trying to provide a national constitution that would cover all banks. This Act stipulates that 25% is the statutory reserve ratio of bank deposits. In 1863, Lincoln needed more green money to win the war. So he made an important compromise, signed the 1863 national banking act. The act authorizes the government to approve the issuance of uniform bank notes by

group of nationally known financial moguls and politicians gathered at Jekyll Island and created the outline that became the Aldrich Plan for the growth of the Federal Reserve System. Attending the Jekyll Island meeting with Aldrich were: • Prominent European banker and Kuhn, Loeb, & Co. partner Paul Warburg, who would later serve on the Federal Reserve's first Board of Governors and whose knowledge of European central banking was crucial to the meeting’s success. • J.P. Morgan & Co. senior partner

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

central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals. The Federal Reserve Act of 1913 gave the Federal Reserve responsibility for setting monetary policy. The Fed can not control inflation or influence output and employment directly; instead, it affects them indirectly, mainly by raising or lowering a short-term interest rate called the "federal funds" rate. The Federal Reserve has certain tools at its

The term monetary policy refers to what the Federal Reserve, the nation’s central bank, does to influence the amount of money and credit in the U.S economy. The main goals of this policy are to achieve or maintain full employment, as well as, a high rate of economic growth, and to stabilize prices and wages. By enforcing an effective monetary policy, the Federal Reserve System can maintain stable prices, thereby supporting conditions for long-term economic growth and maximum employment. Up until

founding fathers established a government system to distribute certain powers of the federal government to particular branches that have checks and balances in place to assure efficiency and openness among its divisions. One may assume that the organization that controls the monetary supply of an economic powerhouse of a country would have strong oversight and control over the policies they carry out. The Federal Reserve, also referred to as The Fed, has a purpose to protect and control the fiscal system

system, which eventually came in the Banking Act of 1933, or the Glass-Steagall Act. The bill was designed “to provide for the safer and more effective use of the assets of banks, to regulate interbank control, to prevent the undue diversion of funds into speculative operations, and for other purposes.” The measure was sponsored by Sen. Carter Glass (D-VA) and Rep. Henry Steagall (D-AL). Glass, a former Treasury secretary, was the primary force behind the act. Steagall, then chairman of the House Banking

The Federal Reserve System, often referred to as the Fed, is the United States central bank. It was created by Congress to provide the nation with a safer, more flexible and stable monetary and financial system. The Fed is an independent institution that is to some extent influenced by the government. It is under the supervision of the congress. On the other hand, as an independent body, the Fed has the power to act freely, without its decisions being ratified by the President of the United States

conditions, one can surely assume that a near-term rise in interest rates is inevitable. If the Federal Reserve were to increase interest rates, how will this affect the economy in both the

level of time deposits and excess reserves, and the level of total reserves and required reserves. Use the model of money supply determination discussed in class. Show your work. Multiple Choice Questions (50 points) Use a scantron. 1) As of 2006, about