economics

economics
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  • This is probably a dumb question but, where does money come from?
  • Well...
  • A lot of people think that the government prints off the money
  • But actually it comes from the Federal Reserve, also known as the FED.
  • The FED is responsible for printing the money and determining how much should be put into circulation 
  • The three main functions of the FED is to provide and maintain an effective payment system, regulate banking operations, and conduct monetary policy. The FED also has 7 members of the Board of Governors. They are selected by the president and confirmed by the senate. Their main role is to implement monetary policy of the United States.  Monetary policy is controlling the amount of money in circulation, inflation rate, and interest rate, to ensure trust in the currency of the country. 
  • Does that answer your question?
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