Across the globe, countries use a fractional reserve banking system. This is a system where banks accept deposits from savers, keep a fraction of those deposits as bank reserves, then loan out and invest the rest of the bank reserves. For this discussion, your task is to:

Consider your initial thoughts regarding Fractional Reserve Banking, and explain whether it generated any concerns regarding your deposits, or the banking system as a whole.

Include these objectives:

• Explain the structure and organization of the U.S. Federal Reserve;
• Discuss how central banks impact monetary policy, promote financial stability, and provide banking services;
• Explain bank supervision;
• Explain how deposit insurance and lender of last resort are two strategies to protect against bank runs