Share This Article:

Economic Definition of Federal Reserve System. Defined.

Offline Version: PDF

Term Federal Reserve System Definition: THE central bank of the United States. It includes a Board of Governors, 12 District Banks, 25 Branch Banks, and assorted committees. The most important of these committees is the Federal Open Market Committee, which directs monetary policy. The Fed (as many like to call it) was established in 1913 and modified significantly during the Great Depression of the 1930s. It's duties are to maintain the stability of the banking system, regulate banks, and oversee the nation's money supply.

 

« Federal Reserve pyramid | Federal Savings and Loan Insurance Corporation »

Permalink: http://glossary.econguru.com/economic-term/Federal+Reserve+System

Alphabetical Reference to Over 2,000 Economic Terms