ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Reserve Bank activities serve primarily three audiences-bankers, the U.S. Treasury, and the public: Federal Reserve Banks are often called the “bankers’ banks” because they provide services to commercial banks similar to the services that commercial banks provide for their customers.

Detailed explanation-2: -Bank holding companies constitute the largest segment of institutions supervised by the Federal Reserve, but the Federal Reserve also supervises state member banks, savings and loan holding companies, foreign banks operating in the United States, and other entities.

Detailed explanation-3: -Federal Reserve Board-Federal Reserve Banks.

Detailed explanation-4: -The Reserve Banks serve banks, the U.S. Treasury and, indirectly, the public. A Reserve Bank is often called a “banker’s bank, ” storing currency and coin, and processing checks and electronic payments.

Detailed explanation-5: -The Federal Reserve Banks are not a part of the federal government, but they exist because of an act of Congress. Their purpose is to serve the public.