Which of the following BEST describes two of the three primary functions of the Federal Reserve System?
A) Developing new financial markets and aiding banks in conducting their business
B) Aiding banks in conducting business and managing the U.S. money supply and interest rates
C) Managing the U.S. money supply and interest rates and monitoring interbank relationships
D) Monitoring interbank relationships and acting as a bank for the federal government
E) Acting as a bank for the federal government and developing new financial markets

Question

Quizplus · Accepted Answer

The Federal Reserve System's primary functions are to aid banks in conducting their business and to manage the U.S. money supply and interest rates. While monitoring interbank relationships and acting as a bank for the federal government are also important functions, they are not considered primary. Developing new financial markets is not one of the primary functions of the Federal Reserve System.

Which of the Following BEST Describes Two of the Three