The Fed: decreases the money supply when the economy contracts. performs banking services for commercial banks in districts where it operates. calculates the expected expenditure for the federal government every year. outlines expected revenue that is due from the collection of taxes and fees.

performs banking services for commercial banks in districts where it operates.

Explanation:

The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.

Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.

Hence, the Fed performs banking services for commercial banks in districts where it operates, as well as providing services to the general public.

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