ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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State’s central bank
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Nation’s central bank
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Locality’s central bank
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City’s central bank
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Detailed explanation-1: -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-2: -Which of these best describes the Federal Reserve System (the Fed)? It is a mostly independent agency that supervises and manages the financial system.
Detailed explanation-3: -Most important policy-making body for controlling the growth of the money supply.
Detailed explanation-4: -Tools of Monetary Policy. To foster economic growth while maintaining stable prices, the Federal Reserve must balance the flow of money and credit with the needs of the economy. Discount Window Loans. Payment System Services. Safekeeping and Transfer of Securities. Services to the U.S. Treasury.