How Does the Federal reserve Create the Money Supply The Benefit and the responsibility of Commercial banks in the Federal reserve System Benefit: In the case of emergency needing cash the commercial bank can borrow the money from the Federal reserve bank at its discount window. This will efficiently avoid the possibility of bankruptcyHow Does the Federal Reserve Create the Money Supply • The Benefit and the Responsibility of Commercial Banks in the Federal Reserve System – Benefit: In the case of emergency needing cash, the commercial bank can borrow the money from the Federal Reserve Bank at its discount window. This will efficiently avoid the possibility of bankruptcy