Question
The responsibilities of the Federal Reserve include influencing the supply of money and credit, regulating and supervising financial institutions, serving as a banking and fiscal agent for the United States government and supplying payments services to the public through depository institutions like banks, credit unions, and savings and loans. Payments issuing, transferring, and redeming U.S.government securities, processing and clearing checks, and transferring funds. __ Monetary policy is the strategic actions taken by the Federal Reserve to influence the supply of money and credit in order to foster price stability and maintain maximum sustainable economic growth.Through these actions, the Fed helps keep our national economy strong and the world economy stable. "The Federal Reserve System,Federal Reserve Bank of Kansas City Based on the text what is the key role of the Federal Reserve in the U.S economy? to regulate the stock market in order to ensure transparency to regulate prices in order to protect consumers and limit inflation to regulate the supply of money in order to control the federal budget to regulate banks in order to control the money supply and interest rates
Answer
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Zachariah
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Answer
D. to regulate banks in order to control the money supply and interest rates
Explanation
The key role of the Federal Reserve in the U.S. economy, as described in the text, involves influencing the supply of money and credit. This is done through strategic actions known as monetary policy, which aims to foster price stability and maintain maximum sustainable economic growth. The Federal Reserve also regulates and supervises financial institutions, serves as a banking and fiscal agent for the U.S. government, and supplies payment services to the public. Among the options provided, the most accurate description of the Federal Reserve's role is to regulate banks in order to control the money supply and interest rates, which aligns with its monetary policy actions to influence the economy.