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

Question

Quizplus · Accepted Answer

The Federal Reserve Banks have the responsibility of controlling the money supply in the economy through various monetary policy tools such as open market operations, discount rates, and reserve requirements. While the Fed also performs other functions such as serving as fiscal agents for the federal government, holding deposits of commercial banks, and clearing checks among commercial banks, the primary economic policy function is controlling the supply of money.

Which of the Following Is the Basic Economic Policy Function