The Federal Reserve manages the nation's money supply to keep _____ low and the _____ growing at a sustainable rate.

The Federal Reserve was created in the year 1913 after the
Federal Reserve Act was passed. The purpose of this act was to create a central bank
that would oversee all financial activity in the nation and which had the authority to
print legal tender or currency notes.

The consequence of
this was the Federal Reserve was a body that was given the ability to control the amount
of currency in the economy and increase or decrease it as required by the prevailing
circumstances. This is essential as the money supply needs to be regulated to maintain
financial stability. The Federal Reserve was a means to prevent financial panics and it
was available for the banking system as a lender of last resort in case of any
emergency.

By its ability to control the dollars in the
economic system: The Federal Reserve manages the nation's money supply to keep
inflation low and the economy
growing at a sustainable rate.