Question

Which statement about the Federal Reserve Bank (the Fed) is most accurate?

a. The Fed is an agency of the US Treasury Department that has the responsibility of collecting tax receipts for the IRS.
b. The Fed manages the U.S. money supply and interest rates.
c. The Fed is the primary government agency involved in carrying out our nation's fiscal policies
d. The Fed is the agency of the government that ensures that the United States maintains enough gold reserves to pay any foreign debts that result from international trade.

Answer 1

The most accurate statement about the Federal Reserve Bank (the Fed) is that it manages the U.S. money supply and interest rates. The Fed conducts the nation's monetary policy by using tools such as open market operations to influence economic activity.

Step-by-step explanation:

The most accurate statement about the Federal Reserve Bank (the Fed) is: b. The Fed manages the U.S. money supply and interest rates.

The Federal Reserve's most important function is to conduct the nation's monetary policy. This involves managing interest rates and credit conditions, which influences the level of economic activity. The Fed uses various tools, such as open market operations, to implement monetary policy.