re are a few simpler ways to use the banking system. Cash services are the most simple and most important function of the FRS. The system makes sure that there is enough currency and coin flowing to meet the needs of the banks and consumers. All currency is in the form of Federal Reserve notes. These notes are obligations of the U. S. Government, and are designed and printed by the Bureau of Engraving and Department of Treasury. There are twelve Federal Reserve banks that are approved by the Federal Reserve Act to issue the currency that is made. What happens if the currency is thought to be counterfeit after being in circulation? Along with the bills that have been worn through use, suspected counterfeit bills are placed aside for later inspection. If, in fact, they are counterfeit, then the bills are destroyed and the face value is subtracted from the total value of the Federal Reserve notes.When people think of bank transactions, they usually think of coins and dollar bills as the form of transaction, but what about check transactions? Since checks are not considered as currency and coin, how are they transacted? Checks would fit into the non-cash transactions along with the EFT. Checks that are collected through the FRS are credited to the place where the check has been sent. If the check happened to be an interbank check, the process would take a little longer. The reason is is because the check has to go through the other banks and depository institutions that are involved with that particular check. In the 1970s, the FRS introduced a program that would improve the efficiency of check clearing. This program increased the number of facilities to enable the FRS to collect more checks in a faster time period. These programs are located at each of the Reserve banks, except the one in New York. There are new ways of check processing today that has made this system almost as modernized as it can get. Not all transactio...
