Question

The Federal Reserve System is the​ ___________ for the United​ States, which is defined as the government agency responsible for​ __________. A. central​ bank; the conduct of monetary policy B. ​Treasury; carrying out open market exchanges of government securities C. financial​ comptroller; regulatory oversight of government reserves D. national​ bank; ensuring money demand equals money supply.

Answer 1

The correct answer is option A.

Step-by-step explanation:

In the United States, the federal reserve bank system is the central bank. It is an agency that controls the money supply in an economy.

The federal reserve bank is responsible for conducting monetary policy on behalf of the central government.

It performs a number of functions such as issuing of currency, acting as a banker for the government, banker for the other commercial banks, etc.

It acts as a lender of last resort for commercial banks. It controls the flow of money in the economy through a number of tools such as open market operations, discount rate, cash reserve ratio, required reserve ratio, etc.