Question

The federal reserve has tools at its disposal to help regulate the financial system. Which tool might they use to help stabilize prices?

A. Controlling the price of goods
B. Engaging in trade treaties
C. regulation of interest rates

Answer 1

C. Regulation of interest rates

The Fed is responsible for managing the supply of money/inflation, regulating banks, and acting as a bank for the US government.

Answer 2

Regulation of interest rates ( C )

Step-by-step explanation:

The federal reserve tool that it can use to stabilize prices is the ability to regulate interest rates. the lower the interest rate the less the inflation therefore prices will tend to be more stable in the market and companies can put up with taking out loans to go into more productive activities