The Federal Reserve

Mitch Clark&Kaitlyn Nance

About the Fed

The Federal Reserve is also known as the Bank's banks. It is a centralized banking system. All national banks are required to join the Fed. There are 12 districts and NC is in the 5th district, the Richmond District.


  • Federal Supervision- sets reserve requirments
  • Agent of Federal government- fed holds a checking account for the US treasury
  • Monetary Policy- influences money and credit conditions in the econmoy
  • Open Market Policy- operations by buying and selling government securities
  • Lending Standards- legislation dealing with lending and credit
  • Supplies Currency- medium of exchange for value

Fed>Member Bank>Consumer

Extra Info

*The Fed lends money to member banks.

* Tight money helps stabilize the economy and loose money stimulates it.

*Participates in open market opeartions- buying government securities.

* Supervises and set standards for banks to follow

*Establish confidence in the monetay system

*Assist in lending money to member banks

*Clears out checks

*Is the only way that currecy or money are distributed