ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Conduct monetary policy
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Supervise and regulate banks
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Provide financial services to banks
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Manage the federal deficit
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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: -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-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