The Mighty Dollar – How Does It Really Work?

Think about the following:

• Who supervises banks to ensure that they have enough funds and follow good practices to protect your money?
• Why do you think it is important to use a bank for your own money? Wouldn't it be easier to keep it in a drawer inside your house so you won't have to go to an ATM or the bank to withdraw funds?
• How do banks transfer huge amounts of funds to each other?

Let's look at the Federal Reserve Bank, which provides all of these services and more.