Question

Which of the following is NOT one of the responsibilities of the Federal Reserve?

A Supervising the Reserve banks
B Maintaining a stable banking system
C Setting the nation’s monetary policy
D Establishing the federal budget

Answer 1

I think the correct answer from the choices listed above is option B. It would be maintaining a stable banking system that is not one of the responsibilities of the Federal Reserve. The Federal Reserve System is the central banking system of the United States. However, it is not obliged to maintain a stable system.

Answer 2

The correct answer is D Establishing the federal budget

The congress establishes the budged while the Federal Reserve is self funded and sends a budget report to the Congress.