ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Federal Reserve System is the central bank of the United States. It performs five general. functions to promote the effective operation of the U.S. economy and, more generally, the public. interest. The Federal Reserve.

Detailed explanation-2: -The Federal Reserve System, often referred to as the Federal Reserve or simply “the Fed, ” is the central bank of the United States. It was created by the Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system.

Detailed explanation-3: -There are three key entities in the Federal Reserve System: the Board of Governors, the Federal Open Market Committee (FOMC), and the 12 Federal Reserve Banks.

Detailed explanation-4: -The Board of Governors–located in Washington, D.C.–is the governing body of the Federal Reserve System. It is run by seven members, or “governors, ” who are nominated by the President of the United States and confirmed in their positions by the U.S. Senate.

Detailed explanation-5: -The Fed controls the supply of money by increas-ing or decreasing the monetary base. The monetary base is related to the size of the Fed’s balance sheet; specifically, it is currency in circulation plus the deposit balances that depository institutions hold with the Federal Reserve.