Asked by Breana Gordon on May 08, 2024
Verified
The agency directly responsible for monetary policy in the United States is
A) the twelve Federal Reserve Banks.
B) the Board of Governors of the Federal Reserve System.
C) the Congress of the United States.
D) the United States Treasury.
Monetary Policy
The process by which the central bank or monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure economic stability and growth.
Federal Reserve
The central bank of the United States, responsible for monetary policy, regulating banks, maintaining financial stability, and providing financial services.
- Understand the role and functions of the Federal Reserve in regulating the money supply.
Verified Answer
EJ
Esther JosephMay 09, 2024
Final Answer :
B
Explanation :
The Board of Governors of the Federal Reserve System is directly responsible for monetary policy in the United States. The Federal Reserve System is an independent agency of the federal government responsible for regulating the supply of money and credit in the economy. The twelve Federal Reserve Banks help to implement the policies established by the Board of Governors. The Congress of the United States has oversight responsibility for the Federal Reserve System, but it does not have direct control over its monetary policy decisions. The United States Treasury is responsible for managing the government's finances, including the issuance of Treasury securities, but it does not have responsibility for monetary policy.
Learning Objectives
- Understand the role and functions of the Federal Reserve in regulating the money supply.