THE FEDERAL RESERVE SYSTEM

The Federal Reserve System, often referred to as the Federal Reserve or simply the Fed, is the central bank of the United States. It was founded by Congress in 1913 by "The Federal Reserve Act" 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. It is important to take into account that despite being a part of the executive branch the FED is not under the direct control of the President.

THE BANKING SYSTEM OF THE UNITED STATES

 In the US, the principal financial institutions are:

- commercial banks (domestic and foreign);

- thrift institutions that include savings and loan associations (S&Ls), mutual savings banks and credit unions;

- insurance companies;

- private and government pension funds;

- commercial / consumer finance companies;

- mutual funds.