Answer: Regulate banks
Step-by-step explanation:
The Federal Reserve System is referred to as the central banking system of a country. The country's monetary policy is under the Federal Reserve System as it regulates the money supply as well as the interest rates.
The Federal Reserve System gives financial services to the government, and also regulates the financial institutions i.e the banks. Some of the tools use by the Federal Reserve System to influence the economy are the open market operations, the reserve requirement etc.