The Federal Reserve System Term Paper by bllchck

The Federal Reserve System
Explains the importance of the Federal Reserve System (the Fed) as the central banking institution of the U.S.
# 113676 | 1,680 words | 4 sources | MLA | 2009 | US

$19.95 Buy and instantly download this paper now


This paper relates the history of banks in the U.S. the panic of 1907 and the creation of the Federal Reserve System (the Fed). The author points out that, even though the Fed has exercised its functions, presently, the United States economy is in turmoil due to financial crisis. This financial disorder, the author believes, was caused by the breakdown of subprime mortgage lending; however, the Fed is taking steps, which are described in the paper, to promote financial regulation and financial stability.

Table of Contents:
The Federal Reserve System in Today's Economy
The United States History of Banking
The Panic of 1907
The Creation of the Federal Reserve
The Federal Reserve Handling of the Present Day Financial Crisis
Regulations on Mortgage Lending
Regulations on Government Agencies, Fannie Mae and Freddie Mac

From the Paper:

"As you can see, banks at this time were not stable without the regulation of the Federal Reserve. There was no required reserve ratio in place yet for banks to make sure they had enough cash on hand to satisfy withdrawal demand. They also could not lend money in the long-term because of this. Also, the fact that banks would get stuck with worthless paper due to not having enough cash on hand without the Fed's required reserve ratio policy, which in turn slowed down the economy as a whole."

Sample of Sources Used:

  • "Banking History". Office of the Comptroller of the Currency. November 21, 2008
  • Bernanke, Chairman Ben S. "Financial Regulation and Financial Stability." Federal Deposit Insurance Corporation's Forum. Arlington, Virginia. July 8, 2008.
  • Meltzer, Allan H. A History of The Federal Reserve, Volume I: 1913-51. Chicago: University of Chicago Press, 2003. Ebsco Database. 4a27ec3413ef%40sessionmgr104
  • "The Federal Reserve". The Federal Reserve System. November 21, 2008

Cite this Term Paper:

APA Format

The Federal Reserve System (2009, April 24) Retrieved April 21, 2024, from

MLA Format

"The Federal Reserve System" 24 April 2009. Web. 21 April. 2024. <>