Banking system
yet effective function of the system. What becomes apparent, are not only how important these functions are, but also how effective they are in maintaining the goals of the Central Banking System. It was financial crises, which lead to the creation of the Federal Reserve, and it is a financial crisis that it is now best prepared to handle.
Through the combined efforts of the Board of Governors, Reserve Bank, and FOMC, the Federal Reserve is in a strong position to make monetary policy, provide a safe banking system, and contribute to an effective banking and payment system, all of which help to maintain a healthy economy.