What is a central bank, and why do we need one?
The Federal Reserve, often called the Fed: • manages our nation’s supply of money and credit and operates at the center of the nation’s financial system; • keeps the wheels of business rolling with currency, coin, and payments services, such as electronic funds transfer and check-clearing; • serves as the banker for the federal government by providing financial services for the U.S. Department of the Treasury; • supervises and regulates a large share of the nation’s banking and financial system; and • administers banking and finance-related consumer protection laws.
