What are the responsible of the Federal Reserve?

Answer 1

The federal reserve has three main tools it uses to bring about its goals if full employment, healthy inflation and stability

The fed acts as a bank to all other banks, each bank must have an account with the fed in which they keep a certain percentage of their checkable deposits as reserves. This percentage is mandated by the fed.

The fed also loans money to banks on a short term basis in order to help banks out of liquidity "jams", this is frowned upon by the fed, who would much rather see banks borrow to each other.

The rate at which banks borrow from each other is heavily influenced by the Fed and it is called the federal funds rate. This is an interest rate, and most other interest rates are tied in with this one, so the Fed can influence interest rates in this way.

The Fed also conducts open market operations, in which they buy or sell bonds from the public in order to increase or decrease the supply of money in the US economy.

The Fed prints money. It places the money in circulation by buying government bonds. This means that every $ is essentially an IOU to the Fed for which the government (tax paying citizens at least) pays interest as long as it is in circulation. The checkable deposits each bank holds in their FED account accumulate date in the form of interest owed by Gov to the Fed. There is no enough money in circulation to ever pay off this accumulated debt.