The Role of the Federal Reserve
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- 4e Describe the roles of the Federal Reserve, banks, interest rates, and credit analysis with respect to decisions on financial lending (CLO 5)
Distributing Currency: Keeping the Cash Flowing
The Federal Reserve distributes the coins minted and the paper money
printed by the U.S. Treasury to banks. Most paper money is in the form
of Federal Reserve notes. Look at a dollar bill and you'll see "Federal
Reserve Note" at the top. The large letter seal on the left indicates
which Federal Reserve Bank issued it. For example, bills bearing a D
seal are issued by the Federal Reserve Bank of Cleveland, and those with
an L seal are issued by the San Francisco district bank.