5 Facts About Federal Reserve Act

1. The Federal Reserve Act represented a recognition that banking and currency would remain unstable without a unifying regulatory system at the national level.

2. The Federal Reserve Act relocated supervision of the banking system from the private sector to the federal government.

3. The Federal Reserve Act was intended to prevent a national financial crises and promote economic stability.

4. The Federal Reserve Act permitted national banks to make mortgage loans for farm land, which had not been permitted previously.

5. The Federal Reserve Act created a national currency and a monetary system that could respond effectively to the stresses in the banking system and create a stable financial system.