What is the Federal Reserve System? What's its structure?

Answer 1

The other answers are a lot facts but no sustance. The Federal Reserve System is a system of money clearing houses, banks that only have banks for customers, for the banking system of the US. The "Fed" as it's called in the papers sets the interest rates that banks pay when they borrow money, this is used by your bank as a starting point for the intrest rates they charge you. With the onset of computers the "Fed" really serves no actually needed purpose. It has been there for so long the bankers are used to it so they don't do away with the "Fed". Computers can now do the clearing house job but with the bankers being the way they are it just keeps on doing an unneeded job because it gives the bankers some level of comfort.

Answer 2

The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central banking system of the United States.

The Federal Reserve System is a quasi-governmental banking system composed of (1) a presidentially-appointed Board of Governors in Washington, D.C.; (2) the Federal Open Market Committee; (3) twelve regional Federal Reserve Banks located in major cities throughout the nation; and (4) numerous private member banks, which own varying amounts of stock in the regional Federal Reserve Banks. Ben Bernanke serves as the current Chairman of the Board of Governors of the Federal Reserve.

The Federal Reserve System was created via the Federal Reserve Act of December 23rd, 1913. All national banks were required to join the system and other banks could join. The Reserve Banks opened for business on November 16th, 1914. Federal Reserve Notes were created as part of the legislation, to provide an elastic supply of currency. The notes were to be issued to the Reserve Banks for subsequent transmittal to banking institutions.

Answer 3

the Federal Reserve is a goverment regulatory agency that oversees our banking system. their job is to enact and enforce regulations that keep the economy in balance and protect consumers money. there are 12 regional banks throughout the country that make up the Fed, and the presidents of those banks are on the board.

Answer 4

Rather than giving you the entire history of the Federal reserve, here is the link to Wikipedia's article on the subject:
http://en.wikipedia.org/wiki/Federal_Reserve