Essay On The Federal Reserve System

The Federal Reserve System, though it has many different functions was established to serve the public's interest. The Federal Reserve has three vital sectors that help in its day to day function: the Board of Governors, the Reserve Banks, and the Federal Open Market Committee (FOMC). “The Master said: “Learning without thinking is useless. Thinking without learning is dangerous”’ (Confucius The Analects pg. 7). The Board of Governors is ran by seven member or “governors” that oversees the all operations of the Federal Reserve and its goals and responsibilities given by the Federal Reserve Act. Five of the seven members has one 14 year term that are staggered so that one term expires every even numbered year.The other two are the President and Vice President of the Board of Governors, they have a four year term but may serve an additional four year term if reappointed. The only
These directors contribute local business experience, community involvement, and leadership and reflect the diverse interests of each District. Each board had nine members. Six of the directors are elected by member commercial banks. Three of the directors are appointed by the Board of Governors. From among these three, the Board of Governors selects a chairman and a deputy chairman of the given Bank’s board.”) (“The Federal Reserve Banks also act as fiscal agents of the U.S. government and certain other entities. In other words, they acts as the “government's bank” and maintain the U.S. Treasury’s operating cash account; pay Treasury checks and process electronic payments; and issue, transfer, and redeem U.S. government