This chapter talks about the money related framework. The meaning of cash is the arrangement of benefits in the economy that individuals routinely use to purchase products and enterprises from each other. This is unique in relation to the affluent sense since riches can not be utilized to buy a decent until it is changed over into something like money. Cash has three capacities in the economy. It is a medium of trade, unit of record, and store of significant worth. These three capacities are in charge of recognizing cash from different resources in the economy like stocks and bonds. A medium of trade is a thing given to the merchant by the purchaser while acquiring a decent or administration. A unit of record is the measuring stick individuals use to post costs and record obligations. This is useful on the grounds that individuals would need to value their great and administration in connection to another great or administration which never happens. Rather, both shirts and ground sirloin sandwiches are evaluated in dollars despite the fact that you can value a shirt at 5 burgers. A store of significant worth is a thing people can use to exchange acquiring power from the present to future. A vender that acknowledges cash today can clutch the cash and turn into a purchaser later on. Riches is unique in relation to cash since it gauges nonmonetary stores of qualities (stocks and bonds) and in addition money related stores of significant worth. Liquidity is the straightforwardness with which a benefit can be changed over into the economy's medium of trade. Cash without characteristic esteem is fiat cash. Fiat cash is a request or pronouncement built up as cash by a legislature. The Federal Reserve is the national bank of the United States. A national bank is an organization intended to administer the keeping money framework and direct the amount of cash in the economy. The Federal Reserve has two fundamental occupations. The first is to manage banks and guarantee the wellbeing of the saving money framework. The second is to control the amount of cash, cash supply. Choices made by approach creators are viewed as fiscal arrangement.