Indian vs US Central Banks – Key Differences Explained Simply Confused between RBI and the Federal Reserve? Here's a simple comparison of the Indian and US central banks for beginners. Introduction When it comes to managing a country’s economy, central banks play a key role. India has the Reserve Bank of India (RBI) , and the United States has the Federal Reserve (Fed) . But what exactly do they do? And how are they different? Let’s break it down in a simple and easy way. 1. Full Form & Establishment RBI (India): Reserve Bank of India – Established in 1935. Fed (US): Federal Reserve System – Established in 1913. 2. Main Objective RBI: Focus on price stability , economic growth , and financial inclusion . Fed: Has a dual mandate – keep inflation stable and ensure maximum employment . 3. Structure RBI: Centralized structure, governed by a board appointed by the Government of India. Fed: Decentralized with 12 regional Federal Reserve Bank...
Meta Description (Search Description in Blogger): Learn how the Federal Reserve (the U.S. central bank) works, its functions like controlling interest rates and managing the money supply, explained in simple terms for beginners. Introduction Have you ever wondered who controls the U.S. dollar or who decides the interest rates? That’s the job of the Federal Reserve, the central bank of the United States. Known simply as “the Fed,” it plays a massive role in both the American and global economy. In this post, we’ll explain how the Federal Reserve works in a simple, beginner-friendly way. What Is the Federal Reserve? The Federal Reserve was created in 1913 to stabilize the American financial system. It acts as the central bank of the USA, and its job is to keep the economy healthy and balanced. It’s made up of: Board of Governors (in Washington, D.C.) 12 Regional Federal Reserve Banks (located in major cities) Federal Open Market Committee (FOMC) Key Functions of the Federal Reserve 1. Co...