The Federal Reserve System

The Federal Reserve System It was on December 23, 1973 that the Federal Reserve System, the central bank of United States was developed. (Melicher & Norton, 2005). Its initial duties included giving the country a currency which was flexible, giving companied commercial paper at a discounted rate and to try and enrich the way in which banks were managed. After that its role increased further and now includes ensuring that the economy expands consistently and that the transactions with other countries are in a practical equilibrium so that they acknowledge the economic policies made by the government. (Federal Reserve, 2008). For the Federal Reserve System to work, depository institutions retain a reserve of their money, decided according...