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The Federal Reserve system. (part 1)

The Federal Reserve System (Fed) was established in 1913 to prevent financial crises and their resulting panic, which contributes to bank failures and economic downturns. The main functions of the Fed include monetary policy planning and implementation, banking regulation, financial stability monitoring and providing certain financial services. The Fed is composed of the Board of Governors and 12 regional Federal Reserve Banks. The board, along with the president of the Federal Reserve Bank of New York and the presidents of four other federal banks comprise the Federal Open Market Committee, which supervises open market operations.

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