27.2 The Banking System
MyEconLab Concept Video
The banking system consists of the Federal Reserve and the banks and other institutions that accept deposits and that provide the services that enable people and businesses to make and receive payments. Sitting at the top of the system (see Figure 27.2), the Federal Reserve (or the Fed) sets the rules and regulates and influences the activities of banks and other institutions. Three types of financial institutions accept the deposits that are part of the nation’s money:
Figure 27.2
The Institutions of the Banking System
The Federal Reserve regulates and influences the activities of the commercial ...
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