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Which of the following is a function of the federal reserve?

A. Collecting federal income taxes

B. Arresting individuals for printing counterfeit currency

C. Investigating violations of the Sherman antitrust act

D. Supplying currency to banks

1 Answer

5 votes
The correct answer is D) Supplying Currency to banks

The Federal Reserve is in charge of monetary policy, meaning policy related to the money supply, rather than fiscal policy, such as government spending and tax collection. Monetary supply responsibilities involve determining what amount of currency to supply to banks, usually through the form of the interest rate.
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