In this module, you will learn about the role and functions of the central bank of the United States, the Federal Reserve (Fed). A central bank has many important functions for an economy. This overview module will introduce you to the Fed’s key responsibilities. The Fed is often known for being the:
- Lender of Last Resort (Emergency lending in times of crises)
- Government’s Bank (Fiscal agent)
- Banker’s Bank (Payment services for financial institutions)
- Monetary Authority (Influences amount of money and credit in U.S. economy)
In addition to central banking responsibilities, the Federal Reserve is also one of the banking regulators in the United States. The module will explore the role the Fed plays in this important oversight of banks and financial institutions.
The goal of the module is to pique your interest in the U.S. central bank and the role of the U.S. dollar in our economy.
Before we get started, please take a minute and answer the following questions. We will ask you these questions again after you have completed the module.