00:01
Hey guys, and welcome to another economics example where we're going to be talking some more about some of the functions of the federal reserve slash central banks, specifically the federal reserve for this example.
00:14
And specifically, we're going to be talking about check clearing.
00:20
So, you know, why do they do it and how does it help the banking system? it's kind of more of an old -fashioned thing because checks are nowhere near as popular in the modern day now.
00:34
Than they used to be.
00:36
But back when they were very popular, the reason that the federal government helped and it was such an important task, or sorry, the federal reserve helped and the reason it was such an important task that they did is because there were so many checks.
00:50
And basically what the federal government did was, or the federal reserve was they would act as kind of a middleman to a check...