Define federal reserve system.​

The Federal Reserve System is the central bank of the United States. It performs five general functions to promote the effective operation of the U.S. economy and, more generally, the public interest.

Explanation:

The Federal Reserve System (FRS) is the central bank of the U.S. The Fed, as it is commonly known, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C., the Board of Governors, and 12 regional Federal Reserve Banks in major cities throughout the U.S.

The Federal Reserve performs five general functions—conducting the nation's monetary policy, regulating banking institutions, monitoring and protecting the credit rights of consumers, maintaining the stability of the financial system, and providing financial services to the U.S. government. The Fed also operates three wholesale payment systems—the Fedwire Funds Service, the Fedwire Securities Service, and the National Settlement Service. The Fed is a major force in the economy and banking. Their open mouth operations are known to publicly declare the current interest rate.

correct, but each time you dont pay the price of the penalty can increase.