Question 1
The Federal Reserve (Fed.) acts as the bank for the Government of the United States by redeeming and selling government securities, for example Treasury Bills and Savings Bonds, and giving financial services to the Treasury Department.
The Federal Reserve Banks have a mandate to be the depository and fiscal agent to the government of the United States. In this mandate, the Federal Reserve performs several services to Treasury while acting as the bank to the Federal Government.
The services offered to the Federal Government by the Federal Reserve Include:
- collecting federal tax reports
- processing postal money orders, government checks and U.S. savings bonds
- maintaining accounts for ...