Skip to main content
Business LibreTexts

13.2: Introduction to the Federal Reserve

  • Page ID
    47489
  • What you’ll learn to do: explain the structure, functions, and responsibilities of the Federal Reserve System

    Photo collage of the 12 regional Federal Reserve Banks in the Federal Reserve.

    In a modern, market economy, the availability of credit is critical to the functioning of the economy. Too little credit can hamstring an economy, while too much can cause inflation. The Federal Reserve (or Fed) plays a key role in the macro economy by regulating the supply of credit. In addition, it promotes stability in the financial system, and provides banking services to government and to commercial banks.

    CC licensed content, Original
    • Introduction to the Federal Reserve. Authored by: Steven Greenlaw and Lumen Learning. License: CC BY: Attribution
    Public domain content