The principal objective of the Federal Reserve System is to
A)circulate coins and paper Federal Reserve Notes.
B)subsidize the income of member banks.
C)help stabilize the economy through monetary policy.
D)make profits to remit to the Treasury Department.

Question

Quizplus · Accepted Answer

The Federal Reserve's primary objective is to stabilize the economy through monetary policy. This includes managing inflation, employment levels, and interest rates, among other factors. While the Federal Reserve does generate profits, these are returned to the Treasury Department rather than kept for itself. While the circulation of coins and paper currency is also important, it is not the system's principal objective, and member bank subsidies are not a primary goal.

The Principal Objective of the Federal Reserve System Is to