The Fed's most important monetary function is to
A) supervise member banks.
B) aid in the check-clearing process.
C) hold reserve deposits of commercial banks.
D) regulate the money supply.
E) serve as the banker for the U.S. government.

Question

Quizplus · Accepted Answer

The Fed's most important monetary function is to regulate the money supply. This involves adjusting interest rates and implementing monetary policy to ensure price stability, full employment, and sustainable economic growth. While the Fed also serves as the banker for the U.S. government and holds reserve deposits of commercial banks, its primary role is to manage the money supply.

The Fed's Most Important Monetary Function Is to