В. А. Шляхова, О. Н. Герасина, Ю. А. Герасина английский язык для экономистов english for economists

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A nation’s money supply is based on either the production of 
a commodity or governmental fiat. Commodity money is based 
on valuable metals: gold or silver. Fiat money, on the other hand, 
does not have intrinsic value. To day many countries are on a fiat 
money system, in which the government through its central bank 
controls the money supply.
There are national banks and commerce banks. In the USA 
the Federal Reserve System is an independent U.S. government 
agency. It was established by Congress in 1913 to strengthen the 
supervision of the banking system. Its most important function is to 
manage the country’s supply of money and credit. All commercial 
banks are required by law to be members of the Federal Reserve 
System. A bank that is a member of Federal Reserve System uses 
the Reserve Bank in the same way that a person uses a bank in his 
or her community.
The Federal Reserve System is administered by the Federal 
Reserve Board of Governors, a group of seven individuals appointed 
by the President of the USA for 14-year term and is responsible to 
Congress. But the Governors are, by law, independent of political 
pressure from either the Congress or President.
Money in the U.S. consists of coins and paper currency. 
According to federal law, only the U.S. Treasure and the Federal 
Reserve System can issue U.S. currency.
When the money supply increases, people have more money 
to spend, and demand for goods and services increases. As demand 
increases, business hires more workers to increase output. This is 
an economic growth rule but if prices raise continuously, inflation 
results.

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