ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system. About. the Fed.

Detailed explanation-2: -The authors of the Federal Reserve Act found a fairly simple solution. Instead of banks keeping what they regarded as their reserve deposits with each other, have them keep their reserve deposits with a central federal bank called Federal Reserve Banks.

Detailed explanation-3: -The Federal Reserve conducts the nation’s monetary policy by managing the level of short-term interest rates and influencing the availability and cost of credit in the economy. Monetary policy directly affects interest rates; it indirectly affects stock prices, wealth, and currency exchange rates.

Detailed explanation-4: -The answer is A. The U.S Federal Reserve is responsible for the monetary and money supply. The Fed makes sure the economy is healthy and regulates the amount of money floating within the economy.