The Federal Reserve Headquarters

Some clever persons (we'll refer to them collectively as "government") decide to create The Federal Reserve. (We won’t ask why. We just want to show how it works.)

Patterned after the Federal Reserve System of the United States, The Fantasy Banking System, with the collusive help of their government, set up a central bank, which we refer to simply as The Federal Reserve or The Fed—just like the one we have.

It uses exactly the same tools, albeit simpler, to implement monetary "policy" in this system.