Frequently Asked Questions
The Federal
Reserve
How many Federal
Reserve Banks are there?
Twelve.
Their head offices are located in Boston, New York, Philadelphia, Cleveland,
Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and
San Francisco.
Who owns the
Fed?
Federal Reserve Banks, created
by an act of Congress in 1913, are operated in the public interest rather than
for profit or to benefit any private group. Member banks hold stock in their
regional Reserve Banks, but do not control the Federal Reserve System. Holding
this stock does not carry with it the control and financial interest that
holding publicly traded stock allows. Fed stock cannot be sold or traded.
Member banks receive a fixed 6 percent dividend annually on their stock and
elect six of the nine members of the Reserve Bank’s board of
directors.
So, who owns the Fed?
Although it is set up like a private corporation and member banks hold its
stock, the Fed owes its existence to an act of Congress and has a mandate to
serve the public. Therefore, the most accurate answer may be that the Fed is
“owned” by the citizens of the United States.
Are employees of the
Federal Reserve Bank government employees?
Fed employees are employed by the individual Bank and are not
civil service employees.
How does the Federal Reserve
generate income?
The Federal Reserve System generates income primarily
from the interest on U.S. government securities that it has acquired through
open market operations. Other sources of income are the interest on foreign
currency investments held by the System; interest on loans to depository
institutions (the rate on which is the so-called discount rate); and fees
received for services provided to depository institutions, such as check
clearing, funds transfers, and automated clearinghouse operations.
After it pays its expenses, the Federal Reserve turns the rest of its earnings
over to the U.S. Treasury. About 95 percent of the Reserve Banks’ net
earnings have been paid into the Treasury since the Federal Reserve System
began operations in 1914. Income and expenses of the Federal Reserve Banks are
included in the Board of Governors Annual Report. If a Reserve Bank were
liquidated for any reason, all proceeds after the payment of bills would also
be turned over to the Treasury.
Savings Bonds
& Treasury Securities
Where can I find
information about Savings Bonds?
U.S. Savings Bonds Online offers vast information for all your Savings Bond
questions. Also, Treasury Hunt
helps you identify items that may belong to you.
Where can I find
information about Treasury securities?
The Bureau of the Public Debt maintains the T-Bills, Notes
and Bonds web site, which can answer all your questions about Treasury
securities.
Where can I find
information about the Treasury Direct program?
The Bureau of the Public Debt maintains a
Treasury Direct information page on its web
site.
Where are forms for
the Treasury Direct program?
Treasury
Direct Forms
Where do I find
Treasury auction results for
Treasury bills?
Treasury notes &
bonds
How can I replace or redeem a
lost Savings Bond?
To replace a missing Savings Bond, or request its
redemption, please complete form PDF 1048. Form PDF 1048 can be downloaded (or
ordered) from the Treasury's web
site. This particular form can even be filled in online before printing. As
noted in the instructions, supporting documentation may be required. The form
must be submitted to the Bureau of the Public Debt, Savings Bond Operations
Office, P.O. Box 1328, Parkersburg, WV 26106-1328. If you wish to contact that
office by phone, please call (304)-480-6112.
When is the next 5 year Treasury note auction and
what was the yield of the last one auctioned?
You can call the Federal
Reserve's Treasury Direct line at (800) 722-2678 for upcoming auctions and the
results of previous and recent auctions. You can find the same information on
the Treasury's web site.
Currency &
Coins
How can I find out
how much a specific bill or coin is worth?
Consult a currency collector or dealer, listed in your local
Yellow Pages. You can also try the American Numismatic Association for more
information.
What should I do with
mutilated or burnt currency?
The
Bureau of Engraving and
Printing offers specific guidelines on what to do with badly damaged
currency.
Where can I obtain
newly minted coins, the new state quarters, or commemorative coin
sets?
You may request the newly
minted coins and state quarters from your local financial institution.
Additionally, the U.S. sells special collector sets of the state coins. You can
purchase these sets as well as commemorative coin sets from the U.S. Mint via
their web site, or
call 800-USA-MINT.
I have a note that
does not look genuine. How do I determine if it is counterfeit?
Notify
the nearest Secret Service office or police if you question the genuineness of
a note in your possession.
How do U.S. coins get into
circulation?
The United States Mint ships the coins that it produces to
the Federal Reserve Banks for distribution into the economy through the banking
system. The currency produced by the Treasury Department (both notes and coins)
is placed into and removed from circulation through the Federal Reserve Banks
and their branches. When individuals or businesses want cash to spend, they
write a check, exchanging one form of money (checkbook money) for another
(cash). Banks satisfy this demand with "purchases" of cash from Federal Reserve
Banks. This is done with special checkbook money called a reserve balance. As
this newly obtained cash is spent, it flows back into the banking system as
businesses and individuals deposit it into their accounts. When banks
accumulate more cash than they need for day-to-day transactions, they deposit
it into their bank's checking account at the local Federal Reserve Bank.
Sometimes the Federal Reserve Banks need additional money to replace currency
notes that are unfit for circulation or to meet expanding demand. They then
place orders with the United States Mint, which mints coins, and the Bureau of
Engraving and Printing (BEP), which prints notes.
How can I safely clean older
coins?
Once a coin has been tarnished, there is no way to completely
restore it to newly-minted luster. Ordinary coins, if they are in reasonably
good condition, may be freshened by rubbing them with cheesecloth or cotton
that has been moistened with a paste consisting of baking soda and a few drops
of water. However, it should be noted that the condition of a coin is an
important aspect in determining its value as a collector's item. The finish
could be inadvertently destroyed or seriously affected by the indiscriminate
use of a cleaning agent. If you believe that you have coins that are, or could
be, of numismatic value, you should seek advice from a coin dealer or collector
regarding methods currently being used to clean coins.
What portraits are shown on U.S.
coins?
United States coins currently in circulation have the following
portraits: Abraham Lincoln on the one-cent coin; Thomas Jefferson on the
nickel; Franklin D. Roosevelt on the dime; George Washington on the quarter;
and John F. Kennedy on the half-dollar coin. The one-dollar coin, which was
last produced in 1981, bears the portrait of Susan B. Anthony. A new one-dollar
coin, released into circulation in 2000, bears a portrait of Sacagawea.
What exactly does the sign $
means, and where did it originate?
The origin of the "$" sign has been
variously accounted for, but the most widely accepted explanation is that the
symbol is the result of evolution of the Mexican or Spanish "P's" for pesos, or
piastres, or pieces of eight. The theory, derived from a study of old
manuscripts, is that the "S" gradually came to be written over the
"P,"developing a close equivalent of the "$" mark. It was widely used before
the adoption of the United States dollar in 1785.
What is $1.00 in 1938 worth in
1987?
The Consumer Price Index was 8.06 times as high in 1987 as in
1938. That means that a "market basket" of items that cost $1.00 in 1938 cost
$8.06 in 1987, or that the purchasing power of $1.00 shrank to 12.4 cents over
the period.
To calculate what a dollar is worth, visit the
Federal Reserve
Bank of Minneapolis' website.
When was "In God We Trust" motto
adopted?
The use of the national motto on both U.S. coins and notes is
required by two statutes, 31 U.S.C. 5112(d) (1) and 5114(b), respectively. The
motto was not adopted for use on U.S. paper currency until 1957. It first
appeared on the 1935G Series $1 Silver Certificate, but didn't appear on U.S.
Federal Reserve Notes until the 1963 Series. This use of the national motto has
been challenged in court many times over the years and has been consistently
upheld by the various courts of this country, including the U.S. Supreme Court
in 1977.
The Department of the Treasury and the Department of Justice
intend to actively defend against challenges to the use of the national motto.
In 1992, a challenge was filed and successfully defeated in the U.S. District
Court for the District of Maryland.
More information about the
history of the motto "In God We Trust" can be found on the
Treasury's web site.
Where can I exchange foreign
currency?
Foreign exchange services are not available at Federal
Reserve Banks. We suggest that you start by asking your bank if it provides
foreign exchange services; some main offices of larger banks have a foreign
exchange teller. You can also check the yellow pages under the heading "Foreign
Exchange Brokers." In addition, many airports have foreign exchange desks.
The Federal
Reserve Bank of New York posts rates of frequently traded currencies twice
a day. Foreign exchange rates also appear in the Wall Street Journal and the
business section of many local newspapers. The Wall Street Journal also
publishes weekly rates of all currencies under the table heading World Value of
the Dollar in its Monday edition.
Statistical
Information
Where can I find the
Consumer Price Index (CPI)?
At the
Bureau of Labor
Statistics
Where can I find the
Producer Price Index (PPI)?
At the
Bureau of Labor
Statistics
Where can I find the
Employment Cost Index (ECI)?
At the
Bureau of Labor
Statistics
Where can I find the
Productivity and Cost Numbers?
At
the Bureau of Labor Statistics
Where can I find the
Unemployment, Payroll Employment, and the Average Hourly Earnings
Rates?
At the Bureau of
Labor Statistics
Where can I find H-15
Selected Interest Rates?
The Federal
Reserve Board of Governors provides current
releases for various interest rates, or call (404)
521-8895 for a taped message.
What is the current
debt of the U.S. government?
U.S.
Debt
Where can I find
today's foreign exchange rates?
10 a.m.
rates & 12 noon
rates
Where can I find
historical foreign exchange rates?
FRB St. Louis web
site
Where can I find
daily historical foreign exchange rates?
Board of Governors web
site
General
Information
How can I open a checking account
with the FRBP?
The Philadelphia Fed, as the central bank for the
United States, does not hold accounts for individuals; it hold accounts only
for commercial and foreign central banks.
How can I file a consumer
complaint about a bank?
You can go to our
Consumer Complaints page on our
web site to file a complaint about a bank.
Where can I find a list of bank
holidays?
The Philadelphia Fed's holiday schedule is available from
this Bank's web site.
Who are the current members of
the FOMC?
The FOMC consists of 12 voting members: the seven members of
the Board of Governors of the Federal Reserve System; the president of the
Federal Reserve Bank of New York; and, for the remaining four memberships,
which carry a one-year term, a rotating selection of the presidents of the 11
other Reserve Banks. The list of current
FOMC members is available at
the Board of Governors web site.
Where can I obtain the Monetary
Policy Report to the Congress?
The Federal Reserve Board’s
semiannual monetary policy report to the Congress is available on the
Board of Governors web
site.
To obtain hard copies of the report, please contact the
Board of Governors, Federal Reserve System, Washington, DC 20551, phone (202)
452-3204. |