Question

Which sentence best describes the role of the Federal Reserve System?
a)Its role is to monitor labor cycles and regulate resources.
b)Its role is to regulate US unemployment cycles.
c)Its role is to regulate the US financial system.
d)Its role is to monitor politicians and make recommendations.

Answer 1

The reserve system is more of a Go Big or Go Home kind of thing in money. I would say C, it makes the most sense after using process of elimination.

Answer 2

Answer:

c) Its role is to regulate the US financial system.

Explanation:

The Federal Reserve System is the central bank of the U.S., and it has three primary functions:

- Monetary policy: if influences the amount of money and credit in the U.S. economy.

- Banking supervision: it regulates and supervises financial institutions and activities, making sure the safely manage their operations.

- Finacial services: it provides them to depositoy institutions (banks, credit unions, and savings and loans).

Remember that a financial system is the one in which financial transactions and the exchange of money between investors, lender and borrowers are covered. As you can see, this is done by the Federal Reserve System.