Question

What are the three responsibilities the federal reserve domestic scale holds and three the federal reserve international scale holds?

Answer 1

The Federal reserve bank is actually the bankers' bank of America. It acts like the central bank of U.S it has mainly three responsibilities which are maintaining monetary system, monitoring other national banks, establishing monetary policies both expansionary and contractionary.

Three domestic scale responsibilities of FED are

1) Supervising and monitoring the national banks. The Fed set a bar to hold a fixed amount of money in the bank account , if banks do not have that amount they can take Fed loans  

2) Controlling Inflation by fluctuating interest rates to keep the economy in a balanced state.

3) Using expansionary and contractionary monetary policies to increase the money supply in the economics that can lead to have balanced growth

Three international scale responsibilities if FED are

!) sale and purchase government securities as bonds and securities to increase investment in the factors of production.

2) Federal Open market Committee meeting to determine the target interest rate that can affect on the exchange rate too.

3) FOMC also oversees open market operations to increase the international business bonding and efficiency of U.S