Federal Reserve Act
- Established a banking structure, known as the 'Federal Reserve System', responsible for organizing banking resources and introducing a flexible currency, namely the Federal Reserve Notes. The system comprises a governing board chosen by the President, twelve Federal Reserve banks, a committee managing securities sales in an open market, a primary advisory council, and since 1976, a consumer advisory council. National banks were mandated to be members of this system, while state banks could apply for membership upon fulfilling certain qualifications
- After the enactment of the Federal Reserve Act, the national banks had to join the newly formed federal reserve system.
- The Federal Reserve Act paved the way for the introduction of federal reserve notes which were pegged to gold and commercial paper.
- In the wake of the Federal Reserve Act, state banks could apply for membership in the federal reserve system, provided they met the necessary criteria.