Describe the functions that the FED performs for the banking community.
Generally speaking there are three main roles for the Federal Bank. That said, it is best to start with the their goal. The Fed's mandate is:
"to promote sustainable growth, high levels of employment, stability of prices to help preserve the purchasing power of the dollar and moderate long-term interest rates"
First, the Fed adjusts and sets interest rates to keep the economy growing. What the Fed wants is a moderate amount of inflation.
Second, the Fed oversees the banks to make sure that they are in line with regulatory principles. Compliance is a buzz word here.
Third, the Fed watches jobless rate to make sure that the United States has enough jobs.