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The Federal Reserve, better known as the Fed, is the central back. It is an institution designed to oversee the banking systems and regulate the quantity of money in the economy. ...
The Federal Reserve is who lends money to the government. ... The Fed would lend money to the government when a crisis in the economy arises. ... It controls the quantity of money that is made available in the economy. ... The structure of the Fed is a Board of Governors (seven), appointed by the president of the United States, district banks and bank presidents (twelve), and the Federal Open Markey Committee (five presidents). ...
There are actually two rates that the FOMC can adjust: the federal discount rate and the federal funds rate. ... The federal fund rates attract the most attention, because it is the interest rate that banks charge each other. Banks are required to keep a certain amount of money in the Federal Reserve; those that have an amount that is in excess of the minimum are allowed to loan money to other banks that are running short. Banks cannot collect interest for their money held in the Reserve; however, they are allowed to collect interest on their loans to other banks.
Approximate Word count = 919
Approximate Pages = 3.7
(250 words per page double spaced)
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