Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Federal Reserve Bank

What it is:

Federal Reserve Bank refers to any of the 12 branches of the Federal Reserve System overseeing the implementation of U.S. monetary policy

How it works (Example):

As the country's central banking authority, the Federal Reserve System operates in 12 designated regions (or districts) throughout the United States. Each district is overseen by a Federal Reserve branch bank in a centrally-located major city. These banks are identified by the city in which they are located (e.g. Federal Reserve Bank of New York or Federal Reserve Bank of Boston). These cities are: Atlanta, Boston, Chicago, Cleveland, Dallas, Kansas City, Minneapolis, New York, Philadelphia, Richmond, San Francisco, and St. Louis.

Each Federal Reserve Bank is responsible for lending money and providing financial services to member banks within its district, overseeing the implementation of the Federal Reserve's monetary policy, and monitoring economic activity by collecting and analyzing data for use by the Federal Reserve Board (FRB) as well as the Federal Open Market Committee (FOMC).

Why it Matters:

The U.S. and its economy cover a very large geographical area. The Federal Reserve delegates its central banking authority to Federal Reserve Banks by district in order to facilitate its exercise over the monetary system through lending and policy implementation.

Related Terms View All
  • Auction Market
    Though most of the trading is done via computer, auction markets can also be operated via...
  • Best Execution
    Let's assume you place an order to buy 100 shares of Company XYZ stock. The current quote...
  • Book-Entry Savings Bond
    Savings bonds are bonds issued by the U.S. government at face values ranging from $50 to...
  • Break-Even Point
    The basic idea behind break-even point is to calculate the point at which revenues begin...
  • Calendar Year
    If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December...