Question

Which of the following is a primary responsibility of the Federal Reserve Bank? APrint money BCollect taxes CWrite monetary laws DEstablish monetary policy

Answer 1

Answer:

Letter d. Establish monetary policy

Explanation:

The primary function of the Federal Reserve Bank (FED) is to set monetary policy. In other words, it is the function of the FED to determine the money supply in the economy in order to control inflation and keep the economy stable. To do so, it controls the amount of money in the economy from the use of monetary policy instruments.

Answer 2

The Federal Reserve has many responsibilities but the main one is to establish monetary policy. The Federal Reserve helps control all of the U.S. banks and what is allowed and what is not allowed to happen based on their rules regarding funds. The Federal Reserve is the central banking system in the United States and it was created in 1913. This system was put in place to have one central location of policies and funds within the United States.