Last Friday, we wen to the Federal Reserve Bank which i was also expected to. Because my major is Accounting and Finance, which is connected with Banking system. I had a big interest on this trip and i was fully passionate.
The Federal Reserve Bank in Boston has a enormous building which matches its significant function in the banking system. We listened to a presatation in the underfloor of that building. I was curious about what exactly is in this mainly government owned bank, but the pity was that we could not enter the working places or even have a look.
In the presatation, we have been told that this bank was first created in 1913 with the enactment of the Federal Reserve Act. It can response a series of banking financial panics in case of an financial crisis or unecpected event. Event such as Great Recession or Depression were major foctors leading to changes in the system. Its duties today, according to the authorization of the Congress, are to conduct the nation's monetary policy by influencing monetary and credit conditions in the economy in pursuit of maximum employment, stable prices level, and moderate long-term interest rate. Otherwise, it is able to supervise and regulate the commercial bank institutions to ensure the safty and soundness of the nation's banking and financial system. Furthermore, it also mantains stability of the financial system and contain systemic risk that may arise in financial market. Finally, it provides financial services to depository institutions, the U.S government, and foreign official institutions, including playing a major role in operating nation's payments system.
I really enjoted this trip and i believe all of our classmates were appreciated. Because we all learned lot of new knowledge about American banking system and some financial information.Thanks a lot to our Professor.
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