Business Essentials, 12/e

The Federal Reserve System

1. Objective 16-4 Discuss the functions of the Federal Reserve System and describe the tools that it uses to control the money supply.

Perched atop the U.S. financial system and regulating many aspects of its operation is the Federal Reserve System (the Fed), the nation’s central bank, established by Congress in 1913. This section describes the structure of the Fed, its functions, and the tools it uses to control the nation’s money supply.

Federal Reserve System (The Fed)

central bank of the United States, which acts as the government’s bank, serves member commercial banks, and controls the nation’s money supply

Finding a Better Way

Cultivating a Social Side for Community Banking

Smaller community banks are confronted ...