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What are the money specifics involving the Federal Reserve Note?
Grnthghs
A Federal Reserve note is a monetary instrument that is recognized as currency by the United States and most other countries of the world*. It is "legal tender" in that all payments of debts within the US may be paid with FRN's. It is technically a promissory note issued by the Federal Treasury through the Federal Reserve System, a nominally autonomous agency of the US government, and backed by the "full faith and credit" of the United States. (* The US government, although committed to redeem these notes, has established restrictions on the type and amount of cash transactions by its citizens.) On the Legal Nature of NotesFirstly, the word "note" is defined in the Oxford dictionary in its seventh entry as a "promissory note, written promise to pay, co-signed promissory note, IOU, or note of hand. The real problem with the Federal Reserve Note is that the currency was foisted upon the public without teaching them the ramifications except in abstruse books like "The General Theory of Money, Interest, and Employment". While the public may not be deceived, it must contend with what is created by the hierarchy. The details of the concept of money are not complex, but too many details can cause people to lose interest. Moreover, the note factor means that instead of legalizing a certificate in 1930, the hierarchy legalized debt and took out gold as the specie. "This note is legal tender for all debts public and private" is the legal provision written on the face of the FRN. In other words, the paper was made into "Fiat or legal" currency.
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∙ 14y ago
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Where is money sent after its made?
When money is minted, the first place it goes is the Federal Reserve. The Federal Reserve is like the ultimate lender. All banks get their money from the Federal Reserve.
Who borrows money from federal reserve banks?
All member banks of the Federal Reserve in USA can and do borrow money from the federal reserve. The Federal Reserve is the banker of banks to whom the banks go when they need money.
What government agency conducts monetary policy in the United States?
The Federal Reserve is responsible for managing the money supply in the U.S.
Does income tax money go to the federal reserve?
Not all income tax goes to the Federal reserve but all money that goes to the Federal reserve comes from income tax.
Do you control your money when you declare bankruptcy?
The Federal Reserve controls the money in the United States. The Federal Reserve is a private company not associated with the government.
Who issues money?
Paper money is issued by the Federal Reserve.
What is is the purpose of the Federal reserve bank?
The Federal Reserve Bank manages the U.S. economy by controlling the money supply.
What is the backing for Federal Reserve Notes?
Nothing tangible. Federal Reserve Notes in the United States are fiat money, backed by the people's faith in the issuing Federal Reserve bank.
Was a responsibility of the federal reserve bank?
Responsibilities of the Federal Reserve Bank include loaning money to private banks, printing money, and lessening economic crises.
Who does the federal reserve offer banking services to?
The Federal Reserve offers banking services to the many banks in the United States. The Federal Reserve is where banks store large sums of money.
When the federal reserve decreases the money supply it generally does by selling bonds true or false?
It is true that when the Federal Reserve decreases the money supply it generally does by selling bonds. When the Federal Reserve sells bonds it pushes prices down and increases rates.
The Federal Reserve wants to increase the money supply in the US. What is the Federal Reserve likely to do to accomplish this?
buy securities on the open market.
