PSYC 2000 Chapter : Psych Childhood Class Oct 24
Document Summary
The bank of the u. s. was created to function as a central bank. The writers of the federal reserve act wanted to diffuse power along regional lines, between private sector and government, and among bankers, business people and the public. This has resulted in the evolution of the federal reserve system. Power is divided in 3 ways: among bankers and business interest, among states and regions, between govt and private sector. 4 groups empowered to perform separate duties: the federal reserve banks, private commercial member banks, board of governors, the federal open market committee (fomc) All national banks were required to join the system. State banks were given the option to join. Quasi-public institution owned by private commercial banks in the district that are members of the fed system. Member banks elect 6 directors for each district, 3 more are appointed by the board of governors. 3 b directors are prominent leaders from industry, labor, agriculture, or consumer sector.
