FEDERAL RESERVE BANKS

Federal Reserve Banks were established by Congress as the op­erating arms of the nation’s central banking system. Many of the services provided by this network to depository institutions and the government are similar to services provided by banks and thrift insti­tutions to business customers and individuals. Reserve Banks hold the cash reserves of depository institutions and make loans to them They move currency and coin into and out of circulation/ and collect and process millions of checks each day. They provide checking accounts or the Treasury, issue and redeem government securities, and act in other ways as fiscal agent for the U.S. government. They supervise and examine member banks for safety and soundness. The Reserve participate in the activity that is the primary responsibility

Federal Reserve System, the setting of monetary policy

For the purpose of carrying out these day-to-day operations of the Federal Reserve System, the nation has been divided into twelve Fed­eral Reserve Districts, with Banks in Boston, New York, Philadelphia, Cleveland Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kan­sas City, Dallas, and San Francisco. Twenty-five Branches of these Banks serve particular areas within each District. The map shows lo­cations of the Reserve Banks and their Branches, along with District boundaries and assigned District numbers.

Federal Reserve Bank city:

Boston New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St.Louis, Minneapolis, Kansas City, Dallas, San Francisco. ingtonD С Governors of the Federal Reserve System, Wash-

Federal Reserve Banks operate under the general supervision of the Board of Governors in Washington, D.C. Each Bank has a nine- member Board of Directors that oversees its operations.

Federal Reserve Banks generate their own income, primarily from interest earned on government securities that are acquired in the course of Federal Reserve monetary policy actions. A secondary source of income is derived from the provision of priced services to depository institutions, as required by the Monetary Control Act of 1980. Federal Reserve Banks are not, however, operated for a profit, and each year they return to the US Treasury all earnings in excess of Federal Reserve operating and other expenses.