Question

Which of the following is a primary responsibility of the Federal Reserve Bank?

Answer 1

The correct answer is: "the monetary policy".

The Federal Reserve is the US central bank and therefore it is in charge of designing and applying the monetary policy, which consists on influencing the amount of money in circulation in the economy and the interest rate levels, through mechanisms such as the open market operations.

The main objectives of the monetary policy are to ensure high economic growth, high employment levels and price stability (low inflation).

Answer 2

I believe the answer is: collect taxes

When employees receive their salary, they would see on their slip that some part of it is already deducted as tax payments.
This happen because the company directly cut it and send it to the federal reserve bank before being forwarded to united states treasury.