Federal Reserve Functions
The Federal Reserve functions as the government's banker and as a banker's bank.
The federal reserve serves banks by offering loans and clearing checks.
CHECK CLEARING: The process by which banks record whose account gives up money and whose account receives money when a customer writes a check. The Fed can clear millions of these at a time.
A Bank Holding Company is a company that owns more than one bank.
The Federal Funds Rate is the interest rate that banks charge each other for interest rates.