Question

The role of the Federal Reserve Board of Governors is to:

A. loan money to multinational corporations.
B. set discount rates and reserve requirements.
O c. enforce monetary policy on Federal Reserve banks.
O D. establish new Federal Reserve districts.

Answer 1

Answer: The answer is C

Explanation:C. set discount rates and reserve requirements. The Federal Reserve Board of Governors plays a crucial role in the United States' monetary policy and financial system. Here's a breakdown of the options:

C. Set discount rates and reserve requirements:

Discount rates: This is the interest rate at which banks can borrow money directly from the Federal Reserve. By changing this rate, the Board influences the cost of borrowing for banks, affecting their lending practices.

Reserve requirements: This refers to the amount of money that banks are required to keep in reserve, rather than lending it out. Adjusting these requirements can impact the amount of money available for lending in the economy.

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