Federal Reserve - Different rate of Exchange?

Question

Why does the Federal Reserve have a differant rate of exchange to the bank and its always lower. I have a C.S.check from the USA to England but the rate of exchange is based on the Fedral reserve which is always much lower and consequently the children loose money . Why is it so differant?

Answer 1

How is this possible ?

If the check is in Dollars, then why not take it to any UK Bank that offers a better conversion rate ???

If all else fails, open a Dollar acccount, pay in the check withdraw it as Dollars and take the cash to a UK Bank ...