Final answer:
The Federal Reserve System functions as the government's banker and supplies the economy with paper money. It is not responsible for computing the Dow Jones Industrial Average or monitoring political campaign finances, as these tasks are handled by other entities. Option B and C are correct..
Step-by-step explanation:
Among the primary functions of the Federal Reserve System, we find that it serves vital roles in the management and stability of the U.S. financial system. Exploring the options given, serving as the government's banker and supplying the economy with paper money (fiduciary money) are functions that fall within the Federal Reserve's responsibilities. The Federal Reserve, often referred to as the Fed, is chiefly responsible for conducting the nation's monetary policy, promoting stability of the financial system, and providing banking services to commercial banks and to the federal government.
However, computing the Dow Jones Industrial Average and monitoring political campaign finances are not functions handled by the Federal Reserve. The computing of stock indices, like the Dow Jones, is typically conducted by entities such as stock exchanges or financial services firms. Monitoring political campaign finances is managed by regulatory entities like the Federal Election Commission (FEC) in the United States. To sum up, the correct answers to the question 'Which of the following are functions of the Federal Reserve System? Check all that apply.' are options B. Serving as the government's banker and C. Supplying the economy with paper. The other options, computing the Dow Jones Industrial Average and monitoring political campaign finances, do not fall under the Federal Reserve's purview.