Question

What is a main goal of the Federal Reserve in its monetary policy? A) lowering taxes B) to curb recessions C) increasing government spending D) regulation of the stock market

Answer 1

Answer: B) to curb recessions

Answer 2

Main goal of the Federal Reserve in its monetary policy is to curb recessions

Answer: Option B

Step-by-step explanation:

Monetary policy is a scheme that regulates the circulation of money over the country. It is overlooked by The Federal Bank is also known as The Fed in short. It helps to maintain solid growth in the economy through various techniques. Recession is a term that defines the negative economic growth of a country.

In order to hold back the country from the recessions, The Fed follows 4 major steps in the Monetary policy. Each and every step is important for the Fed and they are handled very carefully. If not recessions can lead to a major economic failure.