scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 676
In 1913 Congress passed the Federal Reserve Act which created the Federal Reserve System The Federal Reserve Act was passed to help make a more sound banking system and healthy economy The components of this system are the Board of Directors 12 Federal Reserve banks and the Federal Open Market Committee The Fed has a variety of functions but I will only talk of a few It acts as a bank to the banks it functions as the bank for the government and it acts as the banking supervisor The 12 Federal Reserve Banks serve specific districts nationwide These banks act as banks for other banks They provide similar services to banks as regular banks do for businesses and individuals The Fed processes millions of dollars in payments Payments made by checks and electronic transfers are a part of this process Another service it provides to banks or financial institution is clearing checks Clearing checks can take up to two days to process This is so because of the travel that the check has to do When the payee receives the check it gets deposited into their bank the bank in turn sends it to the Fed or local clearinghouse to receive payment The Fed sends the check to the payers bank The payment is then debited and credited to the respected accounts Electronic transfers are usually completed the same day It has evolved over the last several years because it is faster more secure and a cheaper way of transferring money Banks can choose to use the fed or a private clearinghouse for a small fee of course Acting as the governments bank fiscal agent is an important role of the Fed also They supply the same services to the government that our local bank supplies to individuals The government uses these accounts for social security payments salaries for federal employees The Federal Reserve Banks sell and redeem savings bonds and
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA