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 (2)
The Federal Reserve System regulates the US financial system by managing monetary policy and overseeing financial institutions. Its main goal is to maintain stability and support economic growth. The correct answer to the question is option C. ;
The Federal Reserve System regulates the US financial system by conducting monetary policy, supervising banks, maintaining stability, and providing financial services. The correct answer to the question is option C, as it best represents the Fed's broad role. Overall, the Federal Reserve plays a critical role in supporting the U.S. economy and its financial institutions.
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