Federal reserve system

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Title: Federal reserve system

Essay Details:

Subject: Book Reports

Author: Jerry H

Date: June 11, 2015

Level:

Grade: A

Length: 5 / 1480

Essay text:

The nation finally came to grips with the need for a central banking system with the creation of the Federal Reserve System in 1913. Among the weaknesses of the banking and monetary system that the Fed was designed to correct was the arrangement for holding reserves and the inflexibility of banks' ability to expand or contract note issues in response to business conditions. It was common practice for banks to place their reserve funds with other banks. This was especially true of small banks that depended on large city correspondent banks to hold their reserves. Yet, during periods of general economic distress, the large banks were often unable to meet deposit withdrawal requests from their correspondents...

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