Outcome: The Federal Reserve

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

The Federal Reserve (or Fed) has a significant impact on the economy by controlling the creation of money. Central Banks such as the Fed have an important role in conducting monetary policy, promoting stability in the financial system, and providing banking services to other banks as well as the government.

The specific things you’ll learn in this section include:

  • Define the money multiplier, explain how to calculate it, and demonstrate its relevance


The learning activities for this section include:

  • Reading: The Federal Reserve Banking Statement and Central Banks
  • Self Check: The Federal Reserve
  • Reading: The Money Multiplier and a Multi-Bank Statement
  • Self Check: The Money Multiplier

Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.