Federal Reserve (Fed): The Federal Reserve is the central bank of the United States. It has various responsibilities including conducting monetary policy, supervising banks, and maintaining financial stability.
Open Market Operations: Open market operations refer to when central banks buy or sell government securities on open markets with commercial banks. This helps control interest rates and influences money supply.
Lender of Last Resort: Central banks act as lenders of last resort by providing emergency funds to commercial banks or financial institutions during times of financial crisis or liquidity shortages.