The main purpose of the Fed is to:
A) maintain the proper functioning of our money system.
B) regulate interest rates.
C) print Federal Reserve Notes.
D) regulate financial institutions.

Question

Quizplus · Accepted Answer

The primary purpose of the Fed is to maintain the proper functioning of the US money system, including promoting economic growth, full employment, stable prices, and a well-regulated financial system. While the Fed does have some involvement in regulating interest rates and financial institutions, those are secondary objectives to their main purpose of stabilizing the economy through monetary policy. Printing Federal Reserve Notes is one way the Fed carries out its monetary policy, but it is not the main purpose of the institution.

The Main Purpose of the Fed Is To