Question

The main function of the Federal Reserve System is to:

A. Control the money supply
B. Set reserve requirements of banks
C. Clear checks from member banks
D. Serve as the fiscal agent for the Federal government

Answer 1

Answer:

D. Serve as the fiscal agent for the Federal government

Explanation:

The Federal Reserve System (FRS) is the central bank of the United States. FRS regulates the U.S. monetary and financial system.

The functions of Federal Reserve System includes;

1. conducting the nation's monetary policy

2. regulating banking institutions

3. monitoring and protecting the credit rights of consumers

4. maintaining the stability of the financial system

5. providing financial services to the U.S. government.