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3 years ago

Which action by the Federal Reserve would help to slow down rising inflation?

2 answers:

7 0

The first is to increase interest rates through the Federal Reserve. ... When banks increase their rates, less people want to borrow money because it costs more to do so if that money accrues interest. So, spending drops, prices drop and inflation slows. ...so it's increas interest rates

Llana [10]3 years ago

5 0

The Federal Reserve will take action to cut the benchmark interest rate which can slow the rise in inflation.

<h2>Further explanation </h2>

The Federal Reserve System or commonly called the Fed is the central bank of the United States. This institution was founded in response to the financial panic in 1907. Over time, the duties and functions of the Federal Reserve System changed and developed. Events such as the Great Depression were some of the main factors that caused changes to the existing Federal Reserve System. The main tasks of the Federal Reserve are as follows:

1. Maintain financial system stability and systemic risk in it that can arise on financial markets

2. Providing financial services to depository institutions, the United States government, and foreign official institutions, including playing an important role in running the national payment system.

3. Carrying out-state monetary policy by influencing monetary and credit conditions in the economy with the aim of maximum employment, stable prices, and moderate long-term interest rates

4. Supervise and regulate banking institutions to ensure the security of the national banking and national financial system, as well as to protect consumer credit rights

The Federal Reserve System is an independent entity in government. There are 5 sections to the Federal Reserve System including the following:

1. Federal Open Market Commission

2. Some advisory institutions

3. Board of Governors

4, 12 Federal Central Banks

The structure of a central bank in the United States is quite unique when compared to a central bank in another country because the US central bank does not have the right to print currencies, where the right is owned by the United States Treasury.

Learn more

Federal Reserve brainly.com/question/3603615, brainly.com/question/8550346

Details

Class: High School

Subject: Social studies

Keyword: Federal Reserve

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