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The
Federal Reserve, which sometimes is referred
to as the Central Bank of the United States, was
established in 1913. The chairman of the Federal
Reserve and the Federal Reserve’s Board of
Directors are appointed by the President of the
United States. The Federal Reserve is responsible
for several important monetary issues including
printing US currency, regulating the supply of
money, issuing government bonds, and setting the
Federal Discount rate. These types of activities
help the Federal Reserve control the supply of
money and that in turn is how inflation is kept
under control. When necessary,
member banks can borrow money from the Federal
Reserve. |
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