Question

Which statement is true?

People throughout history have used only currency notes for financial transactions.
The Reserve Banks determine tax rates.
Only the Federal Reserve can buy government securities.
The Federal Reserve affects monetary policy.
The Federal Reserve affects fiscal policy.

Answer 1

the second last one.....The Federal Reserve affects monetary policy.

Answer 2

The Federal Reserve affects monetary policy.

Step-by-step explanation:

The federal reserve is the central banking system of the United States of America. Created during the early years of the 1910´s, and it was passed and instaurated by the Federal Reserve Act, it affects how monetary policy varies in the United States, the three main actions that the Federal Reserve does are maximizing employment, stabilizing prices and moderating long-term interest rates.