...Continuation

Does the Federal Reserve process all the checks Americans write?
No. The Federal Reserve Banks handle less than one-third of all U.S. checks. Private entities
process the rest.
Is the Federal Reserve responsible for regulating and supervising the entire U.S.
banking system?
No. It shares this responsibility with other federal and state regulatory agencies.
Does the Federal Reserve set interest rates?
The Federal Reserve is responsible for U.S. monetary policy. This means it makes policies that
influence how much money and credit will be available to the U.S. economy. Interest rates
often go up or down in response to the Federal Reserve’s monetary policy decisions, but only
the discount rate is set directly by the Federal Reserve. The discount rate is the rate banks pay
when they borrow from the Federal Reserve.
The Federal Reserve
does not print money.
U.S. paper money is
printed by the Bureau
of Engraving and
Printing, which is part
of the U.S. Treasury
Department.
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