The Federal Reserve System - also called "The Fed" - oversees the nation's system of money and credit. They print money, control what proportion is out there , adjust long-term interest rates and help steer the economy within the proper direction by keeping prices stable and promoting high employment.
many folks think the Fed may be a component of the govt. , but it's actually an independent institution with some governmental oversight.
to carry out its mission, the Fed is organized into three parts: a Board of Governors, 12 regional Reserve banks, and thus the Federal Open Market Committee (FOMC).
The Board of Governors ensures that banks behave responsibly. It supervises the 12 Reserve Banks and helps decide monetary policy, like what proportion money is out there to the economy.
The Reserve Banks are the banks that fund the economy .
They collect data and research on the economy and keep an eye fixed on the banks in their regions.
They also provide financial services to other banks and to the U.S. government.
Lastly, the FOMC could also be a committee of the Federal Reserve System Board that decides the nation's policies about the cash supply and interest rates charged to banks.
All of these parts work together to form sure that the banking system is safe and stable. this means that when you deposit money into your own account, you'll believe that it will be there once you would like it.