The Fed's principal objective is to
A)make profits to pay into the U.S.Treasury.
B)collect tax revenues.
C)supervise the business decisions of banks.
D)manage the money supply and interest rates.

Question

Quizplus · Accepted Answer

The Federal Reserve's main responsibility is to manage the money supply and interest rates to stabilize the economy, control inflation, and promote full employment. The other options (A, B, and C) do not accurately reflect the Fed's principal objective.

The Fed's Principal Objective Is to