Which of the following is one of the Fedʹs policy goals?
A) price level stability
B) exchange rate
C) monetary base
D) help the President win reelection

Question

Quizplus · Accepted Answer

Price level stability is one of the Federal Reserve's policy goals, also known as the "dual mandate" along with maximum employment. The Fed aims to keep inflation low and stable, around 2% per year. Exchange rate and monetary base are tools the Fed uses to achieve its policy goals, not policy goals in themselves. Helping the President win reelection is not a goal of the Fed and would be inappropriate for a central bank to do so.

Which of the Following Is One of the Fedʹs Policy