federal reserve system

federal-reserve-system

The financial crisis of 1907 which resulted in wide spread bank failures the suspension of gold payments,and a serious depression indicated the desirability of a centralised banking system in the country.

 

Therefore, the congress created a national monitory commission to investigate thoroughly the whole field of banking and currency,and to recommended legislation.as a result the federal reserve act was passed on 23rd December,1913 which established the present day federal reserve system and brought all banks in the united states under the authority of the federal government.

 

The first federal reserve board took office on 10th august 1914.as per provisions of the federal reserve act,the united states of America was divide into twelve districts known as federal reserve districts

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