ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -1. Overview of the Federal Reserve System. The Federal Reserve performs five key functions in the public interest to promote the health of the U.S. economy and the stability of the U.S. financial system.

Detailed explanation-2: -The Fed’s main duties include conducting national monetary policy, supervising and regulating banks, maintaining financial stability, and providing banking services.

Detailed explanation-3: -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-4: -About the Federal Reserve System The Federal Reserve System is the central bank of the United States.