Monetary Control refers to policies that governments use in an attempt to stabilize their economies by indirectly influencing various economic aspects such as inflation and employment (Mathai). There are three standard instruments for monetary control utilized by the countries central banks thus open market operations, reserve requirements, and setting of discount rates.
Federal Reserve Bank
The Federal Reserve System was created on December 23, 1913, coming from the enactment of the Federal Reserve Act. The Federal Reserve was formed largely in response to several financial panics that had grappled the United States of America.
The respondent who was a receiver of the central bank sued the petitioner a receiver of Ashland bank in a district court in northern district of Illinois. The intention of the suit was to recover five checks that had been initially drawn by the former and later indorsed by the latter bank.