Final Answer:
In order for people to buy goods and services, the Federal Reserve provides blank Money.Thus the correct option is c) .
Step-by-step explanation:
The Federal Reserve provides the necessary medium of exchange for individuals to buy goods and services, and this medium is in the form of money. Money serves as a universally accepted means of payment, facilitating transactions in the economy. The Federal Reserve, as the central banking system of the United States, is responsible for controlling the money supply, implementing monetary policy, and ensuring the stability of the financial system. By managing the money supply, the Federal Reserve influences interest rates, inflation, and overall economic activity.
Money, in the context of the Federal Reserve, includes physical currency (coins and paper money) as well as digital forms such as bank deposits and electronic transactions. The central bank uses various tools, including open market operations, discount rates, and reserve requirements, to regulate the money supply. These mechanisms impact the availability and cost of money in the economy, influencing consumer spending and investment decisions. In essence, the Federal Reserve plays a crucial role in maintaining the liquidity and stability of the financial system, allowing people to engage in transactions by providing the necessary monetary means.
In summary, the direct answer to the question is c) Money, as the Federal Reserve's primary function is to issue and regulate the money supply, enabling individuals to purchase goods and services in the economy. Understanding the role of money in the broader economic context helps illuminate the central bank's significance in facilitating the smooth functioning of transactions and economic activities.