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1.  What is the Federal Reserve System?

The Federal Reserve System, also known as "The Fed," is the central bank of the United States. It was created to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded. The Federal Reserve System is a network of twelve Federal Reserve Banks and a number of branches under the general oversight of the Board of Governors. The Reserve Banks are the operating arms of the central bank. Learn more.


 

2.  Who created the Federal Reserve, and when was it created?

Congress created the Federal Reserve System on December 23, 1913, with the signing of the Federal Reserve Act by President Woodrow Wilson. However, it took nearly a year to determine the boundaries of the twelve Federal Reserve Districts and to establish the twelve regional Reserve Banks.

 

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