Sunday, July 12, 2009

duties of the fed

In legislation establishing The Fed, Congress Gave It Six Explicit Functions:
1- Conducting Monetary Policy (Influencing The Supply Of the money and credit in the economy).
2- supervising and regulating financial institutions.
3- serving as a lender of the last resort to financial institutions.
4- providing banking services to the U.S. government.
5- Issuing coin and currency.
6- providing financial services (such as check clearing) to commercial banks, savings and loan associations, savings banks, and credit unions.
Of these functions, the most important one is conducting monetary policy.

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