The quantity of money in the United States is essentially controlled by the:
A) President of the United States.
B) Department of the Treasury.
C) Federal Reserve.
D) system of commercial banks.

Question

Quizplus · Accepted Answer

The Federal Reserve, also known as the central bank of the United States, is responsible for controlling the nation's money supply. The Federal Reserve is an independent entity that is guided by a Board of Governors appointed by the President, but its decisions are not directly controlled by the President or any other government agency. The Department of the Treasury plays a role in the management of the federal government's finances, but it does not control the nation's money supply. The system of commercial banks also plays a role in creating and circulating money, but the Federal Reserve ultimately controls the overall supply.

The Quantity of Money in the United States Is Essentially