The Federal Reserve System, or simply the Fed, is the central bank of the United States. It performs five general functions to promote the effective operation of the U.S. economy and the public interest.
The Fed uses monetary policy to address the economic goals of Congress. To understand the factors of economy, you must understand the role of the Federal Reserve and the use of monetary policy.
Describe a brief overview of the Federal Reserve System, who owns it, its structure, and its objectives.
Define monetary policy.
Explain how the Federal Reserve works with Congress to implement monetary policy actions.
Assess the role of the Federal Reserve and the tools it employs to control the supply of money through its monetary policy actions. (Look at the actions the Federal Reserve takes and evaluate the results of those actions.)