The Federal Reserve acquires its unique powers through its ability to:
A) set the consumer price index.
B) intervene in the bond markets.
C) issue money.
D) oversee banking operations.

Question

Quizplus · Accepted Answer

The Federal Reserve acquires its unique powers through its ability to issue money, which includes regulating the money supply and setting interest rates. Its role in overseeing banking operations and intervening in the bond markets also contribute to its power and influence on the economy. However, setting the consumer price index is not a direct power of the Federal Reserve.

The Federal Reserve Acquires Its Unique Powers Through Its Ability