Which of the following is the basic economic policy function of the Federal Reserve Banks?

Question

Quizplus · Accepted Answer

The basic economic policy function of the Federal Reserve Banks is to control the supply of money, which they do through various tools such as setting interest rates and controlling the amount of money in circulation. Holding the deposits or reserves of commercial banks, acting as fiscal agents for the federal government, and the collection or clearing of checks among commercial banks are secondary functions of the Federal Reserve Banks.

Which of the Following Is the Basic Economic Policy Function