The Federal Reserve controls the money supply by:
- raising or lowering the discount rate.
- by raising or lowering the reserve requirement.
- by buying and selling government bonds and treasury bills.
<h3>What is Federal Reserve?</h3>
It should be noted that the Federal Reserve simply means the bank that oversees the economic affairs in a country.
Here, the Federal Reserve controls the money supply by raising or lowering the discount rate, raising or lowering the reserve requirement, and by buying and selling government bonds and treasury bills.
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The old Roman Republic from its Empire had it's Emperor, Hail Caesar, with nearly absolute power. But being a republic then, they also had a Senate of which the Senators were elected from the people, as government's representatives of and for the people. This concept can be adapted to resemble our current legislative branch, vis-à-vis Congress. And of course our executive, commander-in-chief, stems from a less domineering figure of Rome's Emperor Caesar.