When the Federal Reserve, the central banking system in the United States, maintains the stability of the financial system, this is called

Question

Quizplus · Accepted Answer

Monetarism is the economic theory that emphasizes the role of governments in controlling the amount of money in circulation. While the Federal Reserve's actions to maintain financial system stability can involve monetary policy tools, which are closely related to monetarism, the specific term "monetarism" itself refers more broadly to a theory rather than the Fed's operational goal. However, none of the options perfectly match the Fed's role in maintaining financial stability, which is primarily achieved through monetary policy and regulatory measures. The correct terminology for the Fed's efforts to stabilize the financial system is not explicitly listed among the provided options, making this question somewhat misleading.

When the Federal Reserve, the Central Banking System in the United