An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Federal Reserve Act

The law that created the Federal Reserve System and outlines its powers and responsibilities.

Federal Reserve banks

The 12 regional banks that, along with the Board of Governors, make up the Federal Reserve System, America's central bank.

Depository institution

A financial institution that accepts deposits from the public, such as commercial banks, savings banks, and credit unions.

Reserves

Money that banks are required to hold either in their vaults or at a Federal Reserve bank to cover customer withdrawals and comply with regulations.

Excess reserves

Any funds that a bank holds at a Federal Reserve bank beyond the minimum amount it is legally required to keep.

Interest on excess reserves (IOER)

The interest rate the Federal Reserve pays to banks on the funds they hold at the Fed that exceed their required reserves.

Monetary policy

Actions taken by a central bank, like the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals.