MANAGEMENT

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BUISENESS MANAGEMENT

RISK MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
In dealing with the U.S. government, the two key responsibilities of the Fed are lending money to the government and
A
Controlling the nation’s paper currency
B
Reviewing congresstional spending.
C
Developing the federal budget
D
Producing goverment payroll checks
Explanation: 

Detailed explanation-1: -How the Fed Helps the Economy. The Federal Reserve acts as the U.S. central bank, and in that role performs three primary functions: maintaining an effective, reliable payment system; supervising and regulating bank operations; and establishing monetary policies.

Detailed explanation-2: -As the Federal Reserve conducts monetary policy, it influences employment and inflation primarily through using its policy tools to influence the availability and cost of credit in the economy.

Detailed explanation-3: -The Fed controls the supply of money by increasing or decreasing the monetary base. The monetary base is related to the size of the Fed’s balance sheet; specifically, it is currency in circulation plus the deposit balances that depository institutions hold with the Federal Reserve.

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