Which central bank is responsible for managing the currency and money supply in the United States?

The Federal Reserve, often referred to as the Fed, is the central bank of the United States and plays a crucial role in managing the country's currency and money supply. It was established in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. The Federal Reserve formulates and implements monetary policy, supervises and regulates banking institutions, maintains financial stability, and provides financial services.

One of its key functions includes controlling inflation and influencing interest rates, which in turn affects economic growth and employment. By manipulating the money supply through open market operations, setting reserve requirements, and adjusting the discount rate, the Federal Reserve aims to achieve its dual mandate of promoting maximum employment and stable prices.

In contrast, the other options refer to central banks in different countries. The Bank of England serves the United Kingdom, the Bank of Japan manages monetary policy for Japan, and the European Central Bank oversees the euro and monetary policy for eurozone countries. Therefore, they do not have any role in the management of the currency and money supply of the United States, firmly confirming that the Federal Reserve is indeed the correct choice.