In 1913 Congress passed the Federal Reserve Act, which created the Federal Reserve System. The Federal Reserve Act was passed to help make a more sound banking system and healthy economy. The components of this system are: the Board of Directors, 12 Federal Reserve banks and the Federal Open Market Committee. The Fed has a variety of functions, but I will only talk of a few. It acts as a bank to the banks, it functions as …showed first 75 words of 672 total…

…showed last 75 words of 672 total…and it has worked. With its variety of functions the Federal Reserve System has managed to help ensure a sound banking system and a healthy economy. Works Cited Dodwell, David William. Treasuries and Central Banks. London: P>S King & Son, LTD, 1934. Moore, Carl H. The Federal Reserve System: A History of the First 75 Years. North Carolina: McFarland & Co., Inc, 1990. US Bd. of Governors of the Federal Reserve System. The Federal Reserve System, Purposes & Functions. Washington: 1984.