The federal reserve system, also known simply as the fed, is the
central bank of the united states. the fed has several important
functions such as supplying the economy with currency, holding
deposits of banks, lending money to banks, regulating the money
supply, and supervising the banking system. explain how the federal
reserve and the banking system creates money (i.e., increases the
supply of money). is this an inherently inflationary practice?
explain the factors that affect the demand for money.