The main purpose of the Fed is to
A) serve as the bankers' bank for member banks.
B) regulate interest rates.
C) print Federal Reserve Notes.
D) regulate financial institutions.
E) maintain the proper functioning of our money system.

Question

Quizplus · Accepted Answer

The main purpose of the Fed is to maintain the proper functioning of our money system. This includes regulating the money supply, setting monetary policy, and promoting financial stability. While the Fed does serve as the bankers' bank for member banks and regulates financial institutions, these responsibilities are secondary to its overall goal of ensuring a stable and efficient monetary system. The Fed does not print Federal Reserve Notes directly, but it does work with the Treasury Department to ensure an adequate supply of currency in circulation. While the Fed does have some influence over interest rates, this is just one tool it uses to achieve its broader goal of maintaining a stable economy.

The Main Purpose of the Fed Is to