Why was the Federal Reserve System set up

Why was the Federal Reserve System set up

1.Why was the Federal Reserve System set up with 12 regional Federal Reserve banks rather than one central bank, as in other countries?

2.Which entities in the Federal Reserve System con- trol the discount rate? Reserve requirements? Open market operations?

3.Compare the structure and independence of the Federal Reserve System and the European System of Central Banks.

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Why was the Federal Reserve System set up with 12 regional Federal Reserve banks rather than the on`1e central bank, as in other countries?

The Fed system was established consisting of twelve local banks so that they can avoid assigning supremacy in a solitary power to the governor the banking accomplishments of the state. Its organizers acknowledged that if authority was to be determined by a central bank, then this would not get good sustenance for the efficient operation.

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