1) The Federal Reserve

The Federal Reserve of the United States (US), often referred to by its nickname of “The Fed”, is a government-run body that is responsible for economic and monetary policies, as well as regulating the financial institutions in the country. It also doubles as the bank of the US government. One of its primary roles is to keep the economy of the country running smoothly.

The Fed is one of the most powerful organizations in the US, watching over the world’s largest economy, and, as such, has a huge impact on individuals, banks and other financial organizations not just in the US but also all over the world.

While a lot of people may be aware that there is this government body that serves to keep the economy safe and afloat, many fail to understand how or why the government should be involved in this matter. As an investor, one should not be ignorant of this knowledge. It is essential for an investor to, at least, have a basic knowledge of the Federal Reserve System.