which part of the federal reserve system is known as the bankers bank
Federal Reserve System In its role as the central bank of the United States, the Fed serves as a banker's bank and as the government's bank. As the banker's bank, it helps to assure the safety and efficiency of the payments system. As the government's bank or fiscal agent, the Fed processes a variety of financial transactions involving trillions of dollars. Just as an individual might keep an account at a bank, the U.S. Treasury keeps a checking account with the Federal Reserve, through which incoming federal tax deposits and outgoing government payments are handled. As part of this service relationship, the Fed sells and redeems U.S. government securities such as savings bonds and Treasury bills, notes and bonds. It also issues the nation's coin and paper currency. The U.S. Treasury, through its Bureau of the Mint and Bureau of Engraving and Printing, actually produces the nation's cash supply and, in effect, sells the paper currency to the Federal Reserve Banks at manufacturing cost, and the coins at face value. The Federal Reserve Banks then distribute it to other financial institutions in various ways.[34] During the Fiscal Year 2013, the Bureau of Engraving and Printing delivered 6.6 billion notes at an average cost of 5.0 cents per note.[35][36]
Second Bank of the United States By the time of Jackson's inauguration in 1829, the national bank appeared to be on solid footing. The U.S. Supreme Court had affirmed the constitutionality of the bank under McCulloch v. Maryland, the 1819 case which Daniel Webster had argued successfully on its behalf a decade earlier,[62] the U.S. Treasury recognized the useful services it provided, and the American currency was healthy and stable.[63] Public perceptions of the central bank were generally positive.[64][65] The bank first came under attack by the Jackson administration in December 1829, on the grounds that it had failed to produce a stable national currency, and that it lacked constitutional legitimacy.[66][67][68] Both houses of Congress responded with committee investigations and reports affirming the historical precedents for the bank's constitutionality and its pivotal role in furnishing a uniform currency.[69] Jackson rejected these findings, and privately characterized the bank as a corrupt institution, dangerous to American liberties.[70]
United States House of Representatives The United States House of Representatives is the lower chamber of the United States Congress. The Senate is the upper chamber. Together they compose the legislature of the United States.
United States Senate The United States Senate is the upper chamber of the United States Congress, which along with the United States House of Representatives—the lower chamber—comprises the legislature of the United States.