In: Economics
Central bank of america maintain low inflation rate and control the supply of money in its nation. The federal reserve system is the centarl bank of america and the main role od Fed is to carry out monetary policy and maintain money supply. The role of Financial institution is to provide platform for lenders and borrowers both where lenders provide loan to the borrower..
For Example : The ferderal reserve system of america increase or decrease money supply through open market operations and maintain low inflation.