Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
The Federal Reserve Board is a leading Government organization which supervises financial entities and activities, with a view towards maintaining the safety of the entire system and the impact of any financial activity upon the same. The FRB is the governing authority for the entire Federal Reserve System, and was established in 1935 by the Banking Act. The members have the charge of conducting the fiscal and monetary policies via interest rate setting and open market operations. There are seven members in total, along with the Chair, and they are appointed by the U.S. Congress from regional FRBs (Federal Reserve Banks). The FRB is an independent Government agency and has a mandate for maintaining moderate interest rates in the long-term along with stable prices. It has the mandate for creating the national fiscal or monetary policy as well.
Since the entire financial system depends to a large extent on the Federal Reserve Board, the real estate industry is no exception. In fact, the interest rates set by the FRB are the ones which influence the lending rates for borrower in the mortgage or home loan category. Hence, there is a pivotal link between the FRB and the real estate/property industry.
