ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Supervising and regulating banks and other important financial institutions to ensure the safety and soundness of the nation’s banking and financial system and to protect the credit rights of consumers. Maintaining the stability of the financial system and containing systemic risk that may arise in financial markets.

Detailed explanation-2: -It creates money not by printing currency but by effectively adding funds to the money supply. The Fed does this in various ways, including changing the target fed funds rate with the goal of affecting other interest rates. Or it may buy Treasury securities on the open market to add funds to bank reserves.

Detailed explanation-3: -No. The U.S. Treasury’s Bureau of Engraving and Printing prints currency. The United States Mint makes coins. Reserve Banks distribute, receive and process Fed notes, and distribute and receive coin through depository institutions.

Detailed explanation-4: -U.S currency is produced by the Bureau of Engraving and Printing and U.S. coins are produced by the U.S. Mint. Both organizations are bureaus of the U.S. Department of the Treasury.