Question

The main role of the Federal Reserve in the U.S. economy is to:


A.
offer aid to unemployed citizens.

B.
set the federal monetary policy.

C.
create a balanced federal budget.

D.
determine federal income tax rates.

Answer 1

It’s B. The Federal Reserve System is the central bank of the U.S. It conducts monetary policy to manage inflation, maximize employment, and stabilize interest rates. The Fed supervises the nation's largest banks and provides financial services to the U.S. government.