Question

Federal Reserve Banks directly affect the national economy by:

administering consumer protection laws

increasing and decreasing the money supply

providing oversight and services for financial institutions

raising and lowering interest rates

Answer 1

Increasing and decreasing money supply

Answer 2

Federal Reserve Banks directly affect the national economy by increasing and decreasing the money supply. The correct option among all the options that are given in the question is the second option. The other choices can be negated. I hope that this is the answer that has actually come to your help.