| Section 15: The Fed and afterwards | Previous | Next | Section Index |
| The Fed System Initially the Fed’s role was primarily to prevent bank panics by creating an “elastic” currency—largely through making “discount” loans to banks. The Fed was also to establish a nationwide network for transferring money by check and wire, to keep fit currency and coin in circulation, and to supervise state-chartered banks that joined the Federal Reserve System. However, many banks chose not to join the Fed. |
  Reproduction of the Federal Reserve Act |
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