The Federal Reserve System is a(n)

Question

BlackTom AI · Accepted Answer

When evaluating the statement, we start by considering the general role of the Fed in the U.S. economy.
Option 1 posits that the Fed is primarily a lender to foreign banks and governments. While the Federal Reserve does engage in international operations and swap lines with other central banks, its central function is not to act as a lender to foreign institutions as its main purpose; this framing misses the domestic monetary policy responsibilities it holds.
Option 2 claims the Fed is an agency of the US Treasury. In reality, the Federal Reserve operates independently within the framework of the government. It is not a department or agency of the Treasury, and its monetary policy decisions are designed to be insulated from direct congressional control to preserve independent decision‑making.
Option 3 states it is an independent central bank. This aligns with the core understanding that the Fed conducts monetary policy, supervises and regulates banks, maintains financial stability, and provides financial services as a central banking system that operates with a degree of independence from day‑to‑day political pressures, yet remains subject to oversight.
Option 4 describes the Fed as privately owned and managed megabank. This is a common misconception; while the Fed has private‑sector aspects in its structure (member banks own stock in regional Federal Reserve banks), it is not a private bank nor privately owned and operated for profit; its governance and purpose are public‑oriented and defined by law.
Overall, the assessment of these roles shows that the description in Option 3 best captures the Federal Reserve’s fundamental identity and functions, while the other options mischaracterize key aspects of its purpose, governance, or structure.

The Federal Reserve System is a(n)

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The Federal Reserve System is a(n)

查看解析

登录即可查看完整答案

类似问题

Which of the following statements is not the responsibility of the RBA?

The chair of the Federal Open Market Committee is

The four major functions of the Federal Reserve Bank are to

The Federal Reserve System is charged with:

Part 1The primary reason for the creation of the Federal Reserve System LOADING... ​was:Part 2 A. to create a single central bank similar to the Bank of England. B. to reduce or eliminate future bank panics. C. to eliminate​ state-chartered banks. D. to stabilize​ short-term interest rates.

Under the European System of Central Banks, the Governing Council is similar in structure to the ________ of the Federal Reserve System.

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希望你的学习变得更简单

Part 1The primary reason for the creation of the Federal Reserve System LOADING... was:Part 2 A. to create a single central bank similar to the Bank of England. B. to reduce or eliminate future bank panics. C. to eliminate state-chartered banks. D. to stabilize short-term interest rates.