The dual mandate of the Federal Reserve System is to maintain ________.
A)exchange rate and price stability
B)price stability and maximum sustainable employment
C)maximum sustainable employment and GDP growth
D)GDP growth and exchange rate stability

Question

Quizplus · Accepted Answer

The dual mandate of the Federal Reserve System is to promote maximum sustainable employment and price stability. This means that the Federal Reserve aims to keep inflation low and stable while also supporting economic growth and employment. The goal is to strike a balance between these objectives in order to promote long-term economic stability and prosperity. Choice A and D mention exchange rate stability, which is not part of the dual mandate of the Federal Reserve. Choice C mentions GDP growth, which is an important goal for the economy, but it is not part of the Federal Reserve's dual mandate.

The Dual Mandate of the Federal Reserve System Is to Maintain