Two components make up the US Monetary System, the central bank, and the banking system. The central bank is the Federal Reserve System, Board of Governors, and Federal Reserve Banks. These three components work together to influence and control the money supply in our economy, supervise and regulate banks, maintain, and circulate currency, protect consumers, process, and clear checks, and maintain federal government checking accounts. The Fed is our nations bank. It offers banking services to banks, such as processing and clearing of checks, managing a private market for banks to lend to each other, influencing interest rates, and setting reserve requirements for banks, which are the amount of deposited monies banks are required to keep
