NameUniversityCourseTutorDateIntroductionThe United States has successfully applied monetary policies in fostering its economic growth and development . This however did not gravel up easily but involved a large-grained process that was finally sealed by the establishing of the Federal obligate System . The country s main concern was to come up with a organization that harmonizes the supply of common banknotes that would increase certificate measures in the banking sector and increase investor confidence . Such a banking sector would be stable and flexible to accommodate all(prenominal) necessary adjustments that would be inevitable for prosperity and growth of the the States s delicacy . This therefore examines the Federal Reserve System and its tools that argon engaged to expand or contract the America s economy devel opment money supply and interest rates (Wells D . R , 2004 , pp .
7-29In the history of the United States , there has been three banking system get-go bank that existed surrounded by the year 1791 and 1811 , the second was in the midst of 1816 and 1836 . These two banks were responsible for the banking and issuing money in the U .S . and therefore represented U .S treasury . There were other banks which issued their own money and created competition with the first and the second U .S banks . They were however private entities whose operation was under the state maunder With the increase in population , economic activitie s and migration there was sanitarium among! the competing banks and their banknotes . This led to the formation of national banks in 1863...If you want to jump a full essay, order it on our website: OrderCustomPaper.com
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