118 Unit 2 Money and Regulation Chapter Summary Section 5.1 History of the Federal Reserve System • Twice, the US created a central bank, which lasted from 1791 to 1811 and 1816 to 1836. • Without a central bank, the US established a standard currency and national banks to fi ght economic instability. • The Federal Reserve System (Fed) was established in 1913. Section 5.2 Structure of the Federal Reserve System • The Fed’s structure reflects the need to keep it free of corrupting infl fluences. • The Fed is composed of 12 regional central banks. • The Fed’s organization includes the Board of Governors (BOG) and the Federal Open Market Committee (FOMC). Section 5.3 Function of the Federal Reserve System • The Fed’s primary functions enable the US economy to thrive. • The Fed uses fi nancial tools to make and carry out US monetary policy. • Bank regulation and supervision ensures that member banks are stable. • The Fed provides fi nancial services to its member banks and the US government. • The Fed maintains the nation’s economic stability. Check Your Banking IQ Now that you have fi nished this chapter, see what you know about banking by taking the chapter posttest. www.g-wlearning.com/fi nance/