Question

Which statement about the Federal Reserve Bank (the Fed) is most

accurate?
Multiple Choice

O
The Fed manages the U.S. money supply and
interest rates.
The Fed is an agency of the U.S. Treasury
Department that has the responsibility of
collecting tax receipts for the IRS.
The Fed is the agency of the government that
ensures that the United States maintains enough
gold reserves to pay any foreign debts that result
from international trade.
The Fed is the primary government agency
involved in carrying out our nation's fiscal policies

Answer 1

The Federal Reserve Bank manages the U.S. money supply and interest rates, and it is the central bank responsible for conducting the nation's monetary policy, not for collecting taxes, maintaining gold reserves, or executing fiscal policy.

Step-by-step explanation:

The most accurate statement about the Federal Reserve Bank (the Fed) is that the Fed manages the U.S. money supply and interest rates. The Fed's most important function is to conduct the nation's monetary policy, which includes managing interest rates and credit conditions to influence the level of economic activity. As the central bank of the United States, the Federal Reserve is a semi-decentralized entity, separate from the U.S. Treasury Department, with the critical role of stabilizing and strengthening the nation's monetary system through various means, including open market operations. These operations are a part of the monetary policy toolkit used to control the money supply and, consequently, economic stability. The Federal Reserve is not directly involved in collecting taxes, maintaining gold reserves as a payment for foreign debts, or carrying out fiscal policy, which is the responsibility of the government.

Answer 2

The Fed manages the US money supply and interests rate