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Macroeconomics offers us the scope to closely study several components of the economy(global, national, and regional) including structure, performance, and the decision-making machinery. In this branch of economics, we often come across two (2) key concepts – increase interest rates and inflation. Almost all settled or reputed economies in the world have a central banking system board to implement and execute financial or economic policies and procedures. In the United States of America, the Federal Reserve system acts as the central bank and performs key functions to boost up the smooth functioning of the US economy; there are twelve (12) regional Federal banks. In the United States of America, the Federal Reserve (also referred to as “the Fed”)decides and determines the exact interest rate. In Australia, the Reserve Bank of Australia (RBA)acts as the central bank of the country. Both RBA and the Fed are involved with cash rates or interest rates.
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