The Federal Reserve is indeed a central bank, responsible for conducting monetary policy to promote economic growth and stability. It also regulates and supervises banks to ensure the safety and soundness of the banking system. Therefore, option A is the correct choice.

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The Federal Reserve

Question 142

Multiple Choice

The Federal Reserve

A) is a central bank;it is responsible for conducting the nation's monetary policy;and it plays a role in regulating banks.
B) is a central bank;it is responsible for conducing the nation's monetary policy;but it plays no role in regulating banks.
C) is not a central bank;it is responsible for conducing the nation's monetary policy;and it plays a role in regulating banks.
D) is a central bank;it plays a role in regulating banks;but it is not responsible for conducting the nation's monetary policy.

Correct Answer: