FEDERAL RESERVE SYSTEM
Federal Reserve System.The central bank that sets credit and monetary policy by fixing the
reserves to be maintained by depository institutions, determining the discount rate charged by
Federal Reserve Banks, and regulating the amount of credit that may be extended on any security.
- The Federal Reserve System was established by the Federal Reserve Act of 1913. 12 USCA §
- It comprises 12 central banks supervised by a Board of Governors whose members are
appointed by the President and confirmed by the Senate. — Abbr. FRS; Fed. [Cases: Banks and
Banking 351–359.C.J.S. Banks and Banking §§ 650–662, 676–678, 682–687, 746.]
“The Federal Reserve System of 1913 evolved out of a search for consensus among bankers,
politicians, and some academic experts. It was a move toward ‘central bank’ regulation in the
European sense …. [The System] seemed to resolve the outstanding problems in money and
banking. Federal Reserve banknotes could grow with expanding commercial paper and economic
prosperity, and assure a more adequate, reliable monetary growth.” William A. Lovett, Banking
and Financial Institutions Law in a Nutshell 14–15 (1997).
FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
Federal Retirement Thrift Investment Board.A board responsible for administering the Thrift
Savings Plan that allows federal employees to save additional funds for retirement. • It was
established in 1986. 5 USCA § 8472. — Abbr. FRTIB.[Blacks Law 8th]