Final answer:
The largest part of the Federal Reserve System is the Federal Reserve Banks. To encourage employment during a recession, the Federal Reserve would likely buy government securities. The FOMC oversees open market operations and the Fed has several roles, including supervising banks and managing the payment system.
Step-by-step explanation:
The Federal Reserve System is the central bank of the United States and plays a pivotal role in the nation's economy by conducting monetary policy, providing banking services, and ensuring the stability of the financial system. The largest part of the Federal Reserve System organization is C. Federal Reserve Banks, which are spread across twelve regional districts and work with the central Board of Governors to implement Federal Reserve policies.
If the United States enters a recession and the goal is to encourage employment, the Federal Reserve may opt to A. Buy government securities through open market operations. This action is intended to lower interest rates and increase the money supply with the aim of stimulating economic activity and employment. Raising interest rates and selling government securities, options B and D, are typically actions taken to cool down an overheating economy, not to stimulate a recessionary one.
The main role of the Federal Open Market Committee (FOMC) is to oversee the nation's open market operations and make key decisions about interest rates and the growth of the United States money supply. Among other roles, the Federal Reserve supervises and regulates banks to ensure the safety and soundness of the nation’s banking and financial system and manages the payments system.