Ace the 2025 CGFM Exam – Turbocharge Your Path to Financial Mastery!

The central bank of the United States is known as the U.S. Federal Reserve System. This central bank plays a crucial role in the nation's economy by managing monetary policy, regulating banks, maintaining financial stability, and providing financial services to the government. The Federal Reserve conducts monetary policy primarily through open market operations, setting the discount rate, and influencing interest rates, which in turn affects inflation, employment, and overall economic growth.

The other organizations listed serve different functions: the Federal Deposit Insurance Corporation insures deposits at banks and thrifts; the U.S. Treasury manages government revenue, including issuing currency and collecting taxes; and the Federal Trade Commission focuses on consumer protection and maintaining competition within markets. Each of these entities is important in its own right but does not serve as the central bank, which is specifically the role of the Federal Reserve.