Who has the authority to set interest rates and lending activities for the nation's banks?

Question

Quizplus · Accepted Answer

The Federal Reserve System, also known as the "Fed," has the authority to set interest rates and lending activities for the nation's banks. This is done through various policy tools such as the federal funds rate, reserve requirements, and open market operations. The secretary of the Treasury oversees the country's financial policies, but does not directly control interest rates or lending activities. The Internal Revenue Service deals with taxes, and the Federal Deposit Insurance Corporation insures bank deposits and promotes stability in the banking system.

Who Has the Authority to Set Interest Rates and Lending