ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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product markets and factor markets
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stock markets and bond markets
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individuals, banks, and government
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the government and banks
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Detailed explanation-1: -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-2: -The U.S. central banking system-the Federal Reserve, or the Fed-is the most powerful economic institution in the United States, perhaps the world. Its core responsibilities include setting interest rates, managing the money supply, and regulating financial markets.
Detailed explanation-3: -The Federal Reserve, like many other central banks, is an independent government agency but also one that is ultimately accountable to the public and the Congress.