The Federal Reserve System Coursework Example

The Federal Reserve System Coursework Example The Federal Reserve System Coursework – Coursework Example The Federal Reserve System The structure of the Federal Reserve Banks and Board of GovernorsThe structure of the Federal Reserve Banks is a complete one. There are twelve districts where the Federal Reserve Banks are administered with the view of devolving power. Such a system also enables for satisfactory management of the Federal Reserve Banks payment system. The board of governors of each Federal Reserve Bank is constituted of three bankers and three business leaders. Three of the board members are government appointees, and this composition is designed with a view to demonstrating a different perspective in matters pertinent to decision making within the banks. It also helps the government by keeping an eye on issues that are related to decision making. The action of the board of governors and the operations of the banks are governed by laws to forestall any cases of irregularity. One of the recommendations is to improve on marketplace and technological developments such as elect ronic banking. This will help in coping with the increased competition that has been experienced by the private sector (United States, 1996).Independence of the Federal Reserve SystemThe Federal Reserve System ought to be independent of any political influence when undertaking to implement and design its monetary policy. Essentially speaking, economic decisions and measures cannot be left in the hands of the political elite such as the President and the US Congress. For economic development to be spurred and its effects to trickle down to the common man, highly educated and specialized economists who exude substantial experience must be engaged. This will guarantee sound decision making and creation of monetary policies that benefit the common man through extensive research and periodical economic evaluation and analysis.ReferencesTop of FormUnited States. (1996). Federal Reserve System: Current and future challenges require systemwide attention : report to congressional requesters. Washington, D.C: The Office. Bottom of FormTop of FormTop of Form