The dynamic actions of the Federal Reserve System
A) contribute to the smooth everyday functioning of the economy.
B) are designed to meet the credit needs of individuals and institutions.
C) support depositories and other institutions.
D) stimulate or repress the level of prices or economic activity.

Question

Quizplus · Accepted Answer

The dynamic actions of the Federal Reserve System are designed to stimulate or repress the level of prices or economic activity, such as using interest rates to encourage borrowing and spending or to discourage inflation. The other choices may be secondary effects of these actions, but the primary goal of the Fed is to influence the overall direction of the economy.

The Dynamic Actions of the Federal Reserve System