Question

The Federal Reserve's goal in managing the money supply is to ensure that money retains its value. True or False?

Answer 1

That statement is true

In order to do this, Federal reserve made several Monetary policies to control the rate of inflation and deflation that happen to the currencies.
One example of the policies is to control the interest rates for saving. By increasing the interest rate, more people would be encouraged to store their money in the banks and reduce the rate of inflation.