ECONOMICS
FEDERAL RESERVE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
provide financial services to member banks
|
|
|
regulate and ensure a stable banking system
|
|
|
conduct monetary policy
|
|
|
taxation and revenue collection
|
Detailed explanation-1: -Answer and Explanation: The Fed does not provide banking services to consumers. It is tasked with oversight over the banking sector, regulating the money supply in the economy and implementing monetary policies.
Detailed explanation-2: -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.
Detailed explanation-3: -Overview of the Federal Reserve System. The Federal Reserve performs five key functions in the public interest to promote the health of the U.S. economy and the stability of the U.S. financial system. Conducting Monetary Policy. Supervising and Regulating Financial Institutions and Activities. 20-Jan-2023
Detailed explanation-4: -Financial Stability Coordination & Actions. Responding to Financial System Emergencies. Cooperation on Financial Stability. Reports. Financial Stability Report. 24-Aug-2022