Before the creation of our country’s Federal Reserve, the Congress implemented various short-lived experiments to illustrate the distinct views held by the public, regarding the execution of monetary policy and the working of the financial system. During that time, the outcome of these experiments was considered very alarming as in the background, our economy was facing one serious financial crisis after another. This further resulted in the paralyzing of our entire financial industry and also brought an abrupt stop to our once-booming economy. To counter this, Congress enacted the Federal Reserve Act of 1913. This Act resulted in the formation of the Federal Reserve System in the United States. According to me, the ideal role of the Federal Reserve System is to constantly develop and maintain a healthy and efficient monetary system, with its primary goal of maintaining stable prices and maximum employment. As of today, the Federal Reserve system is divided into four parts: a central authority network termed as the Board of Governors, a decentralized network of twelve Federal Reserve banks, the Federal Open Market Committee (FOMC) and the Federal Advisory Council (FAC).