The Federal Reserve

The Federal Reserve

Introduction

Federal Reserve System also known as Fed is a central bank of United States. Being a central bank it has various responsibilities towards economy. Fed may manipulate the economy through the money or monetary policies; the demand and supply of money in the market. Monetary as well as Fiscal policy work side by side in order to sustain equilibrium in the economy. None of the policies may work alone for effective implementation towards achieving societal objectives such as controlling inflation, sustainable balance of payment, economic growth and development, credit creation, investments, taxation and government spending.

Discussion

The primary function ...