Question

The most important function of the Fed is the management of monetary policy and control of the money supply. However the Fed has other important functions: 1. The Fed issues “Federal Reserve Notes,” the paper currency used in the U.S. monetary system. 2. The Fed provides a check collection service for banks (checks are also cleared locally or by private clearing firms). 3. Federal Reserve System acts as the fiscal agent for the Federal government. 4. The Federal Reserve System supervises member banks. Choose one of the four functions above and describe that function in more detail. Additionally find a recent news article that describes the Fed fulfilling the function you have chosen and provide a short summary of that article along with a link to the article. A good source for articles is the Federal Reserve homepage.

Answer 1