Question

The Federal Reserve System is responsible for all of the following except _____.


regulating the banking industry and providing banking services


managing the national money supply to meet current demand


providing banking and fiscal services to the federal government


implementing fiscal policy concerning taxation and government spending

Answer 1

The Federal Reserve System is responsible for all of the functions listed, except for **implementing fiscal policy concerning taxation and government spending**. Fiscal policy is primarily the responsibility of the federal government, specifically Congress and the Executive branch, while the Federal Reserve focuses on monetary policy, which includes regulating the banking industry, managing the money supply, and providing banking services to the government.