Federal Reserve and Monetary Policy Part 10 of 13
Beyond Monetary Policy
The Federal Reserve is also responsible for ensuring the U.S. payments system is efficient and effective, that it supports the 60 Minute Trader economic needs of our countrys citizens, and that its services are available to all commercial banksregardless of size or locationso they can meet the payment needs of their customers. This places the Fed in the often difficult position of competing with some of the institutions it regulates and regulating the payments system in which it is an active participant. In addressing this challenge, integrity and equity are the Feds mainstays.
The Bankers Bank. As the bankers bank, the Fed provides services to financial institutions in much the same way commercial banks serve their customers. This role promotes the smooth functioning of the financial system, contributes to the implementation of monetary policy, and drives the efficiency and technological development of the payments system.
Every business day, Reserve Banks process billions of dollars through currency, check and electronic payments services. The money the Treasury Short Swing Trading prints or mints is put into circulation by the Fed, which also ensures that it is in good physical condition by removing from circulation notes and coins that are damaged, counterfeit or simply worn-out.
An important operation in the Fed system is check clearing. Every day, millions of checks are moved around the country, sorted, tabulated, and credited or debited to the accounts of financial institutions. To speed the collection of checks, these operations take place 24 hours a day.
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