ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Monitor banks
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Maintain the value of currency
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Act as the bank for the U.S. government
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Give out loans to customers
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Detailed explanation-1: -Printing currency (Federal Reserve notes) are under the control of the American treasury, therefore printing currency are not a role of the Federal Reserve System.
Detailed explanation-2: -The Federal Reserve lends to banks and other depository institutions–so-called discount window lending–to address temporary problems they may have in obtaining funding.
Detailed explanation-3: -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-4: -Financial Stability Coordination & Actions. Responding to Financial System Emergencies. Cooperation on Financial Stability. Reports. Financial Stability Report. 20-Jan-2023