BANKING AFFAIRS

Detailed explanation-1: -In the United States, banks and the government work together to form the banking system and to make sure the money supply is adequate, appropriate, and trustworthy. Much of this guarantee is backed through the central banking function of the Federal Reserve.

Detailed explanation-2: -The Federal Reserve System is the central banking system of the United States. It was created in 1913 in response to a series of financial panics, and it consists of the Board of Governors, 12 Federal Reserve Banks, the Federal Open Market Committee, and the Consumer Financial Protection Bureau.

Detailed explanation-3: -The Federal Reserve System performs five functions to promote the effective operation of the U.S. economy and, more generally, to serve the public interest. It includes three key entities: the Board of Governors, 12 Federal Reserve Banks, and the Federal Open Market Committee.

Detailed explanation-4: -The Board of Governors of the Federal Reserve System (the Fed) is responsible for managing the United States’ money supply so that money retains its purchasing power.

Detailed explanation-5: -The Banking Act of 1935 essentially created the Fed as we know it today. It strengthened the central bank’s powers and made them less decentralized than they had been during the Fed’s first two decades. New Deal banking reforms ushered in a long period of banking stability lasting from the 1930s to the 1980s.