The Federal Reserve System: Principles and Practices, History of

The Federal Reserve System, or America's central bank, was created on December 23, 1913. It has created and fulfilled many services for the government and people within the United States. These services include the regulation of financial institutions, maintaining of the payments system and consumer protection laws, and conducting and overseeing monetary policy. The Fed has several unique features which sets it apart from other financial institutions. In essence, the Fed is a decentralized, centralized bank. It …

…laws--and the enforcing of margin requirements are all duties assigned to the Fed as well. These are the responsibilities and upon which the Fed was created. Indeed, the Fed has changed a great deal since it was first created. The principles and practices upon which it was founded has remained the same, and continues to adapt to the world economic climate. The relatively conservative planning has provided the United States economy with stability and prosperity.