How does the federal reserve act as the government's bank?

Answer 1

The Federal Reserve acts as the government's bank by managing the United States' monetary policy, issuing currency, and overseeing the nation's banking system. It serves as the fiscal agent for the U.S. Treasury, processing government payments, issuing and redeeming government debt, and managing accounts for federal agencies. Additionally, the Federal Reserve provides financial services to the government, such as handling transactions and maintaining accounts, ensuring liquidity and stability in the economic system.