The primary function of the Fed is to
A) charter national banks.
B) regulate the supply of money in the world to support capitalism.
C) appoint its board members.
D) charter district banks.
E) regulate the supply of money in the United States to maintain a healthy economy.

Question

Quizplus · Accepted Answer

The primary function of the Federal Reserve (Fed) is to regulate the supply of money in the United States to maintain a healthy economy. This involves conducting monetary policy, which includes setting interest rates, controlling the money supply, and regulating banks to ensure the stability of the financial system. While the Fed does charter national and district banks, these functions are not its primary role. The statement about regulating the supply of money in the world to support capitalism is too broad and not accurate as the Fed does not have jurisdiction outside the United States. The Fed also does not appoint its own board members as they are appointed by the President and confirmed by the Senate.

The Primary Function of the Fed Is to