Question

Which if these is NOT a function of the Federal Reserve?

Answer 1

“Managing the Federal deficit” is not a part of the function of the Federal Reserve.

Explanation:

The federal deficit is the difference between the expenditure that the government makes against the revenues that it gets from the various taxes laid down for its citizens.

• The Federal Reserve mostly regulates the money for the various banks in the country, making sure it functions properly and gives it aid when needed.
• They conduct monetary policy for the smooth inflow of the money in the country along with providing a baseline of functioning for all the district banks as well.

They do not have control over default loans and nor do they have control over the expenditure that the government would have to make in times of emergency.

Hence, they do not manage or look over the Federal deficit