Final answer:
The Federal Reserve's responsibilities include managing monetary policy, ensuring the stability of banks, and providing services to other banks, but not raising money for the federal government.
Step-by-step explanation:
The responsibilities of the Federal Reserve include applying an economic policy to the money supply to offset macroeconomic fluctuations; this is part of their role in conducting monetary policy. The Fed also ensures the financial stability of banks, acting as a central regulator and protector of both the banking system and depositors. Additionally, it acts as a banker for other banks, providing services such as accepting deposits and extending loans, often referred to as being the "banker's bank".
However, raising money for the operations of the federal government by selling bonds is not the responsibility of the Federal Reserve; instead, this task falls to the Department of the Treasury. The Treasury issues government securities to fund the deficit spending of the federal government.
The Federal Reserve's approach to monetary policy includes using tools such as open market operations, changing reserve requirements, and altering the discount rate to manage the supply of money and credit in the economy.