Federal Reserve

IntroductionThe catereral Reserve acts as the central bank for the fall in States economy by regula canister shotg the amount of gold in circulation, appointing the federal interest rate and monitoring the devolve of funds. The feed also sets monetary and fiscal policies to regulate the economy and garter control inflation, production and employment. The Purpose and Function of MoneyMoney is defined as a set of assets in an economy that people on a regular basis use to obtain goods and work from other people (Mankiw, 2007). The badly cash flow is one of the most important aspects of the nib flow mingled with consumers and firms, because without funds, consumers would not have a way to demoralise goods and function, and firms would not have a way to pay consumers for their turn tail given. Money has tierce different consumptions in the economy. The first move of coin is as a medium of exchange. Consumers use money to purchase goods and services from other indiv iduals or firms. The money, as a medium of exchange, is given out in return for something received. For example, Joe sells his services as a handyman. Susan is in need of someone to occupy her leaky faucet, so she calls Joe. Joe fixes her faucet and Susan pays him in cash. In this example, money is used as a medium of exchange surrounded by Susan and Joe.

Money is also used as a unit of account, meaning a yardstick people use to tin prices and record debts (Mankiw, 2007). As a unit of account, money stool better demonstrate how much something is worth to a consumer. The three function of money is as a retentiveness of value, formulate money an item that peo! ple can use to hold over purchasing power from the present to the future (Mankiw, 2007). A farm animal of value could be stocks, If you want to get a rich essay, order it on our website: OrderCustomPaper.com

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