This Chapter is all about money. It deals with the monetary system. Money has three forms: medium of exchange, unit of account, and store of value. The money is also used as currency, which is how it is measured in the economy as coins or paper money.
Also in the Chapter is the major concept of the Federal Reserve. The Federal Reserve works to regulate and maintain balance in the banking system. It is run by a Board of Governors and uses a Federal Open Market Committee to organize trades and policies.
The Federal Reserve is responsible for controlling the amount of money through open market trades and discount rates. Through open market trades, The Fed controls the money by buying and selling government bonds. And through the discount rates, the Fed controls the amount of money by changing the interest rate to banks.
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