Write a short history of the Federal Reserve (FED). Explain how it operates in the United States. What is the function of the FED

Background

The Federal Reserve Bank or he Fed as it is popularly known, was created by an Act of Congress in 1913 to serve as the Central Bank of the United States of America. It is therefore the Principal Bank in the United States and serves as the bank of the US Government by default. As the Central Bank, the Fed is in charge of Financial Institutions in the country especially Banks. They also controls the amount of USD in circulation through different methods such as Open Market Operations, Discount and Reserve ares and requirements and the actual printing of money ( they decide how much money the Treasury Department's Bureau of Engraving and Printing should print).

Responsibilities

The Fed is in charge of Monetary policy which it uses to maintain interest rates and money supply in the United States. As already stated which some additions, the Fed's responsibilities are;

Modus Operendi

in terms of experimental research, mcdonald’s charging different prices in the two cities relates to

answer; commerce clearing house;