private ownership and public control. They are also bankers banks in that they performessentially the same functions for banks and thrifts as those institutions perform for thepublic.b.
The Federal Reserve performs 7 basic functions:i.
The Fed issues Federal Reserve Notes, the paper currency used in the U.S.monetary system.ii.
The Fed sets reserve requirements and holds the mandated reserves that arenot held as vault cash.iii.
The Fed lends money to banks and thrifts.iv.
The Fed provides for check collection.v.
The Fed acts as fiscal agent for the Federal government.vi.
The Fed supervises the operation of all U.S. banks.vii.
The Fed has responsibility for regulating the supply of money, and this in turnenables it to affect interest rates.c.
The most important basic function is the seventh function, the Fed has responsibility forregulating the supply of money, and this in turn enables it to affect interest rates.4.
A debit card withdraws money directly from your checking account with no annual feesor finance charges, whereas a credit card is a loan against a predetermined line of credit.b.
Stored-value card: A card similar in size to a credit card that stores information witheither a computer chip or a magnetic stripe. Consumers buy the cards with prepaidvalue stored on them. The most common uses today are for telephone calls and storegift cards.