Identify a true statement about the Fed
A)The Fed is headed by a fifteen-member Board of Governors.
B)The Fed manages the monetary policy of the United States.
C)The Federal Reserve Banks are owned by the federal government.
D)The Fed drastically increases the money supply when prices begin to rise.

Question

Quizplus · Accepted Answer

The Federal Reserve, commonly referred to as "the Fed," manages the monetary policy of the United States. This includes controlling the money supply, setting interest rates, and serving as a lender of last resort to banks. The Fed is headed by a seven-member Board of Governors, not fifteen, and the twelve Federal Reserve Banks are technically not owned by the federal government but are instead quasi-public institutions. The Fed does not drastically increase the money supply when prices begin to rise; instead, it may use monetary policy tools to rein in inflation.

Identify a True Statement About the Fed