BANKING AFFAIRS

Detailed explanation-1: -As the issuing authority of U.S. currency, the Federal Reserve Board is responsible for ensuring that there is enough cash in circulation to meet the public’s demand domestically and internationally.

Detailed explanation-2: -It is responsible for managing monetary policy and regulating the financial system. It does this by setting interest rates, influencing the supply of money in the economy, and, in recent years, making trillions of dollars in asset purchases to boost financial markets.

Detailed explanation-3: -Traditionally, the Fed’s most frequently used monetary policy tool was open market operations.