How banks work


Banking in the United States

The United States has the decentralizedmeets in Washington, D.C. The Board consists
Federal Reserve System in which there are 12of seven members. The members are appointed
District Federal Reserve Banks, each servingby the President and confirmed by the Senate.
a region of the country. A bank in a specificEach serves a 14-year term. The chairman, a
district would use its own District Federalboard member, is appointed by the US
Reserve  as  its  central  bank.President  for  a  four-year  term.
The Federal Reserve System, also known as theThe 12 District Banks are run and managed by
Fed, is created by and responsible to USa board or nine directors. Six of them are
Congress, but Each District Federal Reserveselected by the member banks and the three
Bank is owned by its member banks. Eachothers appointed by the Fed's Board or
member bank contributes 3 percent of itsGovernor. Each district bank is led by a
capital stock to the district Federal Reservepresident who is selected by the nine
Bank  and  another  3  percent  to  the  Fed.directors.
There are more than 12,000 banks in theBanking hours in the US are 9am to 3pm from
country and about 5,000 are charteredMonday to Friday. The unit of currency is the
nationally and the rest state chartered. AllUS dollar which is divided into 100 cents.
nationally chartered banks must be members ofEvery state in the country has its own
the Fed and the state chartered banks canBanking and landing laws. Each state has its
choose  to  be  members.own banking commission or finance department.
The Fed has its own monetary policy that canCredit cards and traveler checks are accepted
differ from that of government. It acts asby almost all banks but only some major banks
the watchdog of the money supply, interestexchange foreign currency. ATMs you can find
rates and the economy's price level. Its keyin all corners of the country. Some prominent
responsibility is to safeguard the properbanks in the US are Bank of America, SunTrust
functioning  of  the  money system in the US.Bank, Royal Bank of Scotland, HSBC Bank,
Citibank of America.
The Fed is run by a Board of Governors, which



1 A B C D 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103