Final answer:
The purpose of the Federal Reserve System is to conduct monetary policy, provide banking services, and promote economic stability. While supervising the banking industry is not one of its purposes, the Federal Reserve sets interest rates and provides an elastic currency.The correct answer is option A.
Step-by-step explanation:
The purpose of the Federal Reserve System is to perform three important functions: conduct monetary policy, provide banking services to commercial banks and other depository institutions, and provide banking services to the federal government.
The Federal Reserve System's three original goals were to promote maximum employment, stable prices, and moderate long-term interest rates. To achieve these goals, the Federal Reserve sets interest rates and provides an elastic currency, among other tools.
However, supervising the banking industry is not part of the purpose of the Federal Reserve System.The correct answer is option A.