The most important responsibility of the Fed is to
A) clear checks.
B) supervise member banks.
C) serve as fiscal agent for the U.S.Treasury.
D) control the money supply.

Question

Quizplus · Accepted Answer

The most important responsibility of the Fed is to control the money supply in order to stabilize the economy and maintain price stability. While the Fed does perform other functions such as supervising member banks and serving as the fiscal agent for the U.S. Treasury, these are not its primary responsibilities. Clearing checks is handled by private clearinghouses, not the Fed.

The Most Important Responsibility of the Fed Is to