Why do you think people deposit their life savings into banks instead of burying it under the porch or hiding it in a mattress? There was a time when people were afraid to put their money in a bank because economic recessions caused "runs" on the bank, making them unsafe. In 1913 Wilson sponsored a law which created the Federal Reserve System that still regulates and protects your money, credit, and economy today!

This activity might not be viewable on your mobile device.Video segment. Assistance may be required. Watch the following video, which provides a little background on the Federal Reserve System:

Source: About the Fed, The Board of Governors of the Federal Reserve System

Interactive exercise. Assistance may be required. Read the diagram below showing the make-up of the Federal Reserve System in 1913. Scroll over each of the boxes to get an explanation of the function of each part.

Interactive exercise. Assistance may be required. Now that you have looked at the Federal Reserve System as created in 1913, click on the diagram of the current Federal Reserve System below and examine it closely. Note any changes from 1913 that make today's Fed even more effective.

Image Source: Organization of the Federal Reserve system, Wikimedia

Activity:

Interactive exercise. Assistance may be required. Read the statements below and determine if they describe the Federal Reserve of 1913 (then) or the current Federal Reserve. Drag the statement to the correct column of the chart below.