Section 2

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.

Comment Stream

2 years ago

This sucks.

2 years ago

Why are we using this again?