Chapter 13 Curiosities

The Federal Reserve was created for the purpose of stepping in where the U.S. banking system failed. There have been several instances where the banks have fallen short and people have had to rush to withdraw their money. Before 1913, we did not have a central banking system, but rather, we had a bunch of private banks. These private banks experienced a lot of financial panics. So the FED was created for the intent of being a last resort option if/when these crises were to happen again. It was also created for the purpose of coordinating a more stable nationwide banking system.