Blog writing #4 ----The Federal Reserve Banks

Blog writing# 4

Ji Mengzhu (Kelly)

06/28/2010

This week, we have a visit to the Federal Reserve Banks which were created in 1913 and established by Congress as the operating arms of the nation’s central banking system. The appearance of the Federal Reserve Banks is very majestic and spectacular. On the other hand, the Federal Reserve Banks has the very rigorous process for visitors to go inside of the Banks. That is to say, every person should have safety inspection. For instance, all your metallic objects need to be put on the belt, such as coin, cell phone, and anything with Aluminum foil.

Additionally, the professional officer gave us a detailed pretention about the Federal Reserve System. He mainly divided his presentation into three parts: Monetary policy, Payment system and Bank regulation and supervision. During his presentation, I had a better understanding about this Bank. He mentioned that “the Federal Reserve Banks hold the cash reserves of depository institution and make loans. Besides, it will move currency and coin into and out of circulation, and collect and process millions of checks each day.” What’s more important, the Federal Reserve Banks are relatively independent within the government; in other words, it is self-financed and therefore is not subject to the congressional budgetary process.

On the whole, I acquire a lot of knowledge in terms of banking from this trip ---- A visit to the Federal Reserve System.