The Federal Reserve is the central bank of the United States and is the most important regulatory agency in the U.S. monetary system, primarily responsible for influencing the money supply and interest rates. It does not control income or wealth distribution, nor does it set wage levels.

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The Federal Reserve

Question 28

Multiple Choice

The Federal Reserve

A) is the most important regulatory agency in the U.S. monetary system.
B) controls the distribution of income in the U.S.
C) controls the distribution of wealth in the U.S.
D) affects the money supply by setting wage levels.

Correct Answer: