What is one of the things the Federal reserve system does?

Question

set income tax rates at the federal level
influence interest rates
decide who can open bank accounts
give loans to bank customers

Answer 1

One of the things the Federal Reserve System does is influence interest rates. It has the power to adjust the federal funds rate, which is the interest rate at which banks lend to each other overnight. By changing this rate, the Federal Reserve can impact borrowing costs for businesses and consumers, thereby influencing economic activity and inflation.