ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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supplies the economy with currency
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supervises member banks
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controls the money supply
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determines whether to raise or lower taxes
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Detailed explanation-1: -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 Fed’s main duties include conducting national monetary policy, supervising and regulating banks, maintaining financial stability, and providing banking services.
Detailed explanation-3: -The Board of Governors of the Federal Reserve System is responsible for the discount rate and reserve requirements, and the Federal Open Market Committee is responsible for open market operations.
Detailed explanation-4: -Key Takeaways Interest rates are influenced by the supply and demand for loans and credit. Central banks raise or lower short-term interest rates to ensure stability and liquidity in the economy. Long-term interest rates are affected by the demand for 10-and 30-year U.S. Treasury notes.