ing of government securities, by doing so it tries to balance the money in circulation. The Fed plays the role as a banker by maintaining bank accounts for the U.S. Treasury and many government and quasigovernment agencies. The Federal Reserve also acts as a lender to banks and charges a lower interest called a discount rate. In addition to these ways, the Federal Reserve acts as an auditor, controller, guardian, and administrator. The Federal Reserve also controls the money flow by monetary policy. This policy is not a fixed ideology, but a constant juggling act to keep enough money in the economy so it flourishes without growing too fast. This gets done by the Fed's Open Market Committee, which meets every six weeks to evaluate the economy.
             Money is measured by the money supply. "(3) There's no ideal money supply, the Fed's goal is to keep the economy running smoothly, by keeping an eye on the money that people have to spend." There are three money aggregates; they are M1, M2, and M3. M1 or "narrow money" counts liquid assets such as cash and checking accounts; this type of money is immediately spendable. M2, or "broad money," includes M1 and adds savings accounts and money in small time deposits (C
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