Essay Federal Reserve System
This paper is on the Federal Reserve system of the U.S. and outlines its duties and responsibilities.
This paper explains how the Federal Reserve performs the function of regulation, supervision, government services and issuance of currency, checking/clearing services for banks, and wire transfer services. It also looks at the way the bank formulates budgets for its various resources, allocates resources according to the needs of the people, as well as predicts the economy’s performance in the current and future years. Some of the details of the above features are discussed in the paper, which enumerates the roles and responsibilities of the various components of the Federal Reserve.
The System consists of a board of governors in Washington DC and Reserve Banks scattered in different cities that act as support and representation of the different states, to the Federal Reserve Bank. There are seven members in the Board of Governors who are appointed by the President and approved by the Senate. These governors are to serve the Federal Reserve for tenure of 14 years. Furthermore, the President and the Senate are also responsible for the assignment of the Board Chairman and Vice President. These positions each has 4 years terms (Federal Reserve Board 2003). The members selected for the board basically ensure that the monetary flow and interest of the 12 geographical divisions of the country are well represented and that each state has fair treatment in industrial sectors as well as the public interests.