Money, the Federal Reserve System, and Banking

Currency, Federal Reserve and Bank You use money to measure prices, company size, total economic output and income. Coins and banknotes are called currency. People use money everyday. When you go to the movies, you may buy tickets in the currency. Coins and banknotes are suitable for small purchases and are paid directly from one person to another. However, in the case of bulk purchase or payment travel e-mail, the currency is not practical. A check is a written order for payment from the deposit amount.

Federal Reserve System. In 1913, Congress passed the Federal Reserve Act and established the country's central bank. The Federal Reserve has the power to manipulate money supply - the total amount of coins and bills in circulation, and all holdings of banks, credit unions and other financial institutions. The Fed will include seven boards based in Washington, DC and 12 reserve banks in major cities across the country: Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, San Francisco

Well, most people know that the Federal Reserve Bank is managing money supply through monetary policy. However, most people think the Federal Reserve Bank is a government agency. It's not! ! ! As the Federal Reserve Bank is a private company, its shareholders receive a 6% annual dividend like other private enterprises. Let's think about that. There is a private organization that manages the funds supply of the US government. In addition to the people's happiness in the United States do other people think that Wall Street banks may have different challenges? I'm sure. Do not forget to thank these people who destroy their lives in 2008 and stayed away from Scotland.

The Federal Fund is the reserve fund (also known as Federal reserve) held by private banks in the region's Federal Reserve Bank. These balances are reserves of the same name of the Federal Reserve System. The purpose of leaving money to the Federal Reserve Bank is to provide private banks with a mechanism to finance each other. This fund market plays an important role in the Federal Reserve System as it ignites the name of the system and it is used as the basis for monetary policy. Part of the implementation of monetary policy is how much interest is imposed on each other by influencing the lending of private banks to these funds.