The US money reserve, established under the Federal Reserve Act in 1913. It emerged out of the need to safeguard the value of money during recession and depression caused by financial crisis. Banks and higher financial institutions work closely with the US money reserve to buy Gold coins and implement monetary policies. The Act also stipulates statutory objectives for monetary policies as follows; stability in prices, Moderate interest rates and maximum employment.
The US money reserve came about as a reactive measure to the financial crisis of early 1900’s. The financial crisis of those years’ crashed stock markets brought about currency crisis and defaults. The financial crisis is always a headache for banking institutions. In most cases, such crisis situations handle recession and loss of paper or actual money value. Some of the most severe occurrences include the great recession of 2007-08 and the great depression of the 1930’s.
The US money reserve now bears more oversight responsibilities and duties including the regulation and supervision of banking institutions, providing financial services to the US government itself, international organizations and depository institutions, enhancing the stability of financial markets in the US
The Federal Reserve Board of seven members reigns at the helm of the US money reserve with the help of a board of governors. The structure of the money reserve also includes the Open Market Committee, and the twelve regional banks spread out within the US.
For purposes of inclusivity, the US money reserve contains privately owned financial institutions and councils which assist in balancing public and private sector interests. Since nationally recognized and registered banks deposit their stocks in the form of Gold with the Reserve Bank of their region, each region qualifies to select or recommend a board member from their cluster. The Steering Committee of the open market comprises of all the seven board members who serve extended terms as well as the twelve regional bank presidents. However, only five bank heads can vote at any one time in a decision-making forum with the New York Federal Reserve head voting in a permanent capacity and four others rotating on a yearly basis.
The US money reserve differs in structure and function with the US Department of Treasury. It enjoys independence and autonomy seeing that the monetary policies it seeks to implement do not require the approval or oversight by any of the three arms of government. The legislature does not discuss or budget for the funding of the reserve bank.

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