Question

The most important role of the Federal Reserve is to regulate the amount of money __________. A. deposited into banks B. spent on overseas goods C. moving through the economy D. available to the federal government

Answer 1

The correct answer is A. The most important role of the Federal Reserve is to regulate the amount of money deposited into banks.

Step-by-step explanation:

The Federal Reserve System is the central bank of the United States. It is a public / private consortium that controls the organizational structure in which a government agency, known as the Board of Governors, based in Washington DC, participates. Thus, some consider this as the public aspect of the system, and the 12 Reserve Banks of the whole country the private aspect. It is in charge of guarding part of the reserves of the "member banks" of the United States: the federal ones, and the associated state voluntarily.

The Federal Reserve System controls the size of the money supply by conducting open market operations, where the Fed commits to lend or buy certain types of financial instruments to authorized participants.

Answer 2

The Federal Reserve directly controls only the most narrow form of money, physical cash outstanding along with the reserves of banks throughout the country.
A. deposited into banks