ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -No. The U.S. Treasury’s Bureau of Engraving and Printing prints currency. The United States Mint makes coins. Reserve Banks distribute, receive and process Fed notes, and distribute and receive coin through depository institutions.
Detailed explanation-2: -The Federal Reserve monitors financial system risks and engages at home and abroad to help ensure the system supports a healthy economy for U.S. households, communities, and businesses.
Detailed explanation-3: -Remember, they can’t set federal funds or prime interest rates, but they can bend them to their will through OMO. The Fed buying back government bonds from banks leaves more money for banks to play with while selling them means banks have to be more cautious about lending out their reserves.
Detailed explanation-4: -Which of the following is true of the Federal Reserve System? It is the central bank of the United States, It is responsible for setting monetary policy, It is responsible for regulating the banking system. (All of the choices are correct.)