[ad_1]
The Federal Reserve is a government agency to which Congress has entrusted two important functions. It establishes the monetary policy of the country and regulates the banks of the country. What is not so clearly understood is that the Federal Reserve itself is a bank. He takes deposits and borrows money. Then he uses this money to borrow money and buy financial securities. As a result, the Federal Reserve has a balance sheet and an income statement. Each year, it produces an annual report on its performance, as would a traditional bank.
Source link