Question

Identify and explain three functions of the Federal Reserve of your choice, other than its main role of controlling the supply of money.

Answer 1

The main role of the Central bank of the country is regulated money supply in the economy, but there is another role also important which central bank do in everyday business activities.

• The bankers to the government the government treasury department under the control of the Central bank.
• Lenders of the last resort case commercial bank face the problem of the liquidity they can approach central bank for their fund to meet liquidity problem.
• Regulator of the economy central bank regulates the economy not only through money supply but also following the ways example Advertising the government in public projects, developmental issues, publishing th economic data are the main function apart from regulating the supply of the money in the economy.