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comment on this: The Federal Reserve System is a bank created in the United States centered in the middle of the banking system. The Fed
comment on this: The Federal Reserve System is a bank created in the United States centered in the middle of the banking system. "The Fed has four basic responsibilities: regulating commercial banks, performing banking-related activities for the U.S. Department of the Treasury, providing services for banks, and setting monetary policy." (Boone, 2021, p.477-478) In my opinion, providing services for banks would be the most important because I would like my bank to have someone supporting them, so every time I go and take money out, it's there. Our reading tells us that Monetary Policy is the most important. One of the reasons is that the Feds keep the economy under control by ensuring that the money supply grows at an appropriate rate. The Monetary Policy is used to push interest rates up or down, and knowing when to do this is key to the United States' economic growth. The three sources of short-term funding are trade credit, short-term loans, and commercial paper. Trade credit is when companies get an advance on a product or service to prepare for their peak season and promise to pay it back with increased sales. "Under this system, the supplier records the transaction as an
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