• conducts the nation’s monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy; • promotes the stability of the financial system and seeks to minimize and contain systemic risks through active monitoring and engagement in the U.S. and abroad; • promotes the safety and soundness of individual financial institutions and monitors their impact on the financial system as a whole.• fosters payment and settlement system safety and efficiency through services to the banking industry and the U.S. government that facilitate U.S.-dollar transactions and payments; and • promotes consumer protection and community development through consumer-focused supervision and examination, research and analysis of emerging consumer issues and trends, community economic development activities, and the administration of consumer laws and regulations.
The reason for a vertical supply curve Is because the Federal Reserve is the outputting source for money into the economy. The reserve does not supply based on the value of cash but places more emphasis on the interest rates.
Here is the original question:
Respond to the following in a minimum of 175 words:
Explain the major functions of the Federal Reserve.
Discuss why the money supply curve is vertical.
