Identify three functions of the Federal Reserve other than its main role of controlling the supply of money.

1. Conducting Monetary Policy: The Federal Reserve is responsible for implementing and conducting monetary policy to achieve its dual mandate of stabilizing prices and maximizing employment. The Federal Reserve uses different tools such as open market operations, discount rate, and reserve requirements to achieve these goals. 2. Supervising and Regulating Banks: The Federal Reserve is responsible for supervising and regulating banks to maintain the safety and soundness of the banking system. This includes conducting regular examinations of banks, providing banking services to financial institutions, and supervising institutions that hold accounts with the Federal Reserve. 3. Maintaining Financial Stability: The Federal Reserve also plays a key role in maintaining financial stability by monitoring and addressing risks in the financial system. The Federal Reserve monitors financial markets, conducts stress tests on banks, and provides liquidity to financial markets during periods of turmoil. Its role in financial stability has become more important after the financial crisis of 2008.