Unit 4 - Money (3-10-16)

Unit 4-Federal Reserve Bank (FED)

Wording is Key

Functions of the FED: presidential appointment

1. Issues paper money
2. Sets Reserve Requirements and holds reserves of the bank
3. Lends money to the banks and charges them interest
4. Check clearing service for banks
5. Acts as personal bank for the gov't
6. Supervises member banks
7. Controls the Money Supply