Short-term credit plays an essential part in the business financing process. In view of its importance in the nation's credit structure, the market for short-term business credit receives a great deal of attention from financial analysts.

Increasing membership attrition has stimulated research into the costs and benefits of Federal Reserve System membership compared to the nonmembership alternative. Recent research has contributed to our understanding of the membership question in two important ways.

In addition to its central banking responsibilities, the Federal Reserve System also plays an important role in correspondent banking. The twelve Federal Reserve banks supply services, including check collection, wire transfer of funds, provision of currency and coin, and safekeeping of...