The Fed Explains the Payments System

Fedexplained video segmentWhat do the circulatory system and payments systems have in common? Quite a bit, actually! Similar to the circulatory system, which carries blood throughout the body, the payments system keep money flowing between buyers and sellers of goods, services, and financial assets.

Those transactions—trillions of dollars' worth each day—are critical to the economy's growth. The Fed, as the nation's central bank, is responsible for keeping our monetary circulation system healthy—which it does by processing checks, electronically transferring funds, and more.

This important role is the subject of the latest in the Atlanta Fed's animated video series. Learn about the Fed's role in the payments system, the evolution from paper–based to electronic payments, and changes on the horizon. Learn also what the Fed is doing to make sure the payments system remains secure and efficient.

Watch the video to learn more, and be sure to visit the Fed Explained page for more useful resources about key economic concepts and the work of the Fed.

August 22, 2014