Federal Reserve Act

Definition of "Federal Reserve Act"
  1. 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
How to use "Federal Reserve Act" in a sentence
  1. After the enactment of the Federal Reserve Act, the national banks had to join the newly formed federal reserve system.
  2. The Federal Reserve Act paved the way for the introduction of federal reserve notes which were pegged to gold and commercial paper.
  3. 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.

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