Asked by Cianna Rodriguez on Jun 03, 2024

verifed

Verified

Which of the following is not a goal of the Fed?

A) Maintaining a high level of employment
B) Maintaining stability in interest rates
C) Maintaining high prices to encourage production
D) Maintaining stability in financial markets
E) Maintaining stability in foreign exchange markets

Foreign Exchange Markets

Markets involving the trading of currencies worldwide which facilitate currency conversion for international transactions and investments.

Stability

The condition where an economy or a financial system operates without excessive fluctuations or crises.

High Prices

Situations where the cost of goods and services are above average or expected levels.

  • Identify the roles and powers of the Federal Reserve System in regulating the banking system and monetary policy.
verifed

Verified Answer

MA
Mohammad AbudoolahJun 08, 2024
Final Answer :
C
Explanation :
Maintaining high prices to encourage production is not a goal of the Fed; in fact, the Fed's primary goal is to maintain stable prices and control inflation. The other goals listed, including maintaining a high level of employment, stability in interest rates, financial markets, and foreign exchange markets, are all goals of the Fed.