Section 5
The Federal Reserve System
By Boundless
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The Federal Reserve System is the central banking system of the United States, which conducts the nation's monetary policy.
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One of the Federal Reserve's duties is to regulate financial institutions, such as bank-holding companies and state member banks.
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The U.S. Federal Reserve as the "lender of last resort" extends credit to financial institutions unable to obtain credit elsewhere.
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The Fed created a nationwide check-clearing system that provided an efficient and stable way of transferring funds between institutions.
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The Federal Reserve is in charge of setting reserve requirements for all depository institutions in the country.
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The Fed makes loans to depository institutions and charges different discount rates for each of discount windows.
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Open market operations (OMO) refer to a central bank's selling or buying of government bonds on the open market.