Federal Reserve Functions

Corbin Kennedy and Kristen House

The federal reserve system

The Federal Reserve system is a contralized banking system. It is the "bank's bank" All national banks are required to take part. The board of governors represent the public (government) sector, the disctrict fedweral reserve banks respresent the private sector. THe purpose of the federal reserve is to supervise, and regulate banks. The fed regulates monetary policy, which is money and credit and economic conditions.

Open market operations

The fed participates in open market operations, these are treasury bills and loans. They offer a fixed rate of intrest and fixed period of time, they are not subject to income taxes. Examples include: Savings bonds, Treasury bills, and Treasury bonds.