What is the Federal Reserve?

Definition of Federal Reserve: The Federal Reserve Bank is the vital bank in United States of America. It was invented in 1913 when the Federal Act was passed by the Federal Reserve. This act describes the responsibility of the Fed. According to the act, the main aim of Federal Reserve is to furnish the elastic currency and to afford the incomes of commercial paper and to create an effective supervision of banks in US and for many other purposes. The main duties include conducting fiscal policy, regulating the banks and safeguarding the consumer rights. The Federal fulfills the assignment by a network made of twelve banks, called as District Feds. This bank helps in performing several operations that include controlling the supply of money and it also regulates the member banks. The District Feds have its headquarters in New York, Boston, Cleveland, Philadelphia, Atlanta, Kansas City and many more. These banks apply the strategy of the Federal Board and also perform economic research.