The major overall purpose of the Federal Reserve System is to
A) keep the discount rate flexible.
B) insure the deposits of persons holding funds with banking institutions.
C) regulate the money supply and, thereby, provide a monetary climate that is in the best interest of the economy.
D) regulate the levels of excess reserves held by member banking institutions.

Question

Quizplus · Accepted Answer

The Federal Reserve System's primary purpose is to regulate the money supply to promote a stable economy. The other options are secondary functions of the Fed, but not its main purpose.

The Major Overall Purpose of the Federal Reserve System Is