Question

The Federal Reserve System (the 'Fed') was created by the Federal Reserve Act, passed by Congress in 1913, and began operations in 1914. Like all central banks, the Federal Reserve is a government agency. All of the following statements are true about the Fed except:__________.
a) it focuses on making a profit like commercial banks.
b) it has the power to supervise and regulate banks.
c) it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
d) the Federal Reserve is the "lender of last resort."

Answer 1

Answer:

a) it focuses on making a profit like commercial banks.

Explanation:

The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by Congress in 1913, and began operations in 1914. It is just like all central banks, the Federal Reserve is a United States government agency. The following are the responsibilities of the Fed Reserves System;

- It has the power to supervise and regulate banks.

- They promote public goals such as economic growth, low inflation, and the smooth operation of financial markets (monetary policies).

- The Federal Reserve is the "lender of last resort."