ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following was not a purpose of the Federal Reserve Act?
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Help banks acquire emergency cash reserves
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Decrease the efficiency of the national payment system
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Standardize the exchange of checks throughout the United States
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Guard against the domino effect being caused by a bank failure
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Explanation:
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: -The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system.
Detailed explanation-3: -It is the Federal Reserve’s actions, as a central bank, to achieve three goals specified by Congress: maximum employment, stable prices, and moderate long-term interest rates in the United States (figure 3.1).
Detailed explanation-4: -The correct answer is option b) Advising Congress on fiscal policy.
There is 1 question to complete.