Answer:
Step-by-step explanation:
The role of the Federal Reserve System includes:
- Adjusting the interest rates for loans: The Federal Reserve has the authority to influence interest rates in the United States. It does so through its monetary policy tools, such as setting the federal funds rate, to achieve economic goals like price stability and full employment.
- Ensuring all financial institutions follow banking laws: The Federal Reserve, as one of its functions, supervises and regulates banks and other financial institutions to ensure they comply with banking laws and regulations. This oversight aims to maintain the stability and integrity of the U.S. financial system.
- Protecting up to $250,000 of customer deposits: The Federal Reserve, through its role in supervising and regulating banks, contributes to the safety of customer deposits. However, the primary agency responsible for deposit insurance in the United States is the Federal Deposit Insurance Corporation (FDIC), which typically insures up to $250,000 per depositor per insured bank.
- Regulating the business practices of stockbrokers: Stockbrokers and other securities-related businesses are primarily regulated by the U.S. Securities and Exchange Commission (SEC) rather than the Federal Reserve. The Federal Reserve's focus is on the monetary and financial system's stability, rather than regulating stockbroker activities.