Federal Reserve Functions

The Federal Reserve was created by the Congress to provide a flexible, safer, and a more stable financial system. The Federal Reserve is made up of three primary functions which are monetary policy, banking supervision, and financial services. Financial services operate through institutions such as banks, credit unions, savings and loans. There service collects checks, electronically transfers funds, distributing, and receive currency. All of these assets play different roles in contributing towards the federal reserve. The electronic payment service can be done through wire transfers which is known as fed wire another way electronic payments can be processed is through automated clearinghouse service. Automated clearinghouse allows institutions to send credit and debit transfers electronically. Examples of automated clearinghouse are shown through insurance premium payments and Social Security payments. Fed wire is a large amount of

Banking supervision regards two major points which are safety and soundness. This has to do with consumer protection laws, safety and soundness of a bank often gets measured by an examiner. The examiner has to perform an examination review on banks performances which is based off the banks management, financial condition, and its commands with regulations. This helps protect consumer’s rights towards consumer’s protection laws, also helps ensure consumers they are safe with their banks. The federal reserve is federal banking in the United States that performs functions of a central bank. It is made up of three major functions which are monetary policy, banking supervision, and financial services. These three aspects help keep the federal reserve safer, flexible, and have a more stable financial system for its consumers. That way the federal reserve can continue its business without facing any