Question

What was a responsibility of the Federal Reserve Bank?

A. To loan money to private banks

B. To print money

C. To lessen economic crises

D. All of the above

Answer 1

D. All of the above

Step-by-step explanation:

The Federal Reserv is the central bank of the US government, responsible for conducting monetary policy and regulating the economy. Monetary policy is the control of paper money and circulation, so it was and still is the function of the FED to decide on it. In addition, monetary policy consists in regulating the amount of credit available to banks. The FED uses compulsory reserves to manipulate available credit. The reserve requirement is an obligation of banks to deposit with the FED part of the amount received on demand deposits. Thus, the FED can control the amount of money available to banks and maintain a healthy economic environment, avoiding crises like the one of 1929.

Answer 2

Hello!

The correct answer is D

The congress created The federal Reserve trought a law, giving it responsibility for promoting a strong banking system and a thriving economy.