Question

Why is it the Fed’s responsibility to set interest rates, not national banks?

(1 point)
Responses

The Fed is responsible for printing all money.

The Fed is responsible for printing all money.

There are not very many national banks, so few are qualified.

There are not very many national banks, so few are qualified.

The Fed consults national banks, but they do not make the final decisions.

The Fed consults national banks, but they do not make the final decisions.

National banks are for profit, so they are not looking at the overall economy.

Answer 1

The most accurate response to the question is:

**National banks are for profit, so they are not looking at the overall economy.**

The Federal Reserve (the Fed) operates as the central bank of the United States and is focused on overall economic stability and growth, which includes setting monetary policy and interest rates. National banks, on the other hand, are profit-driven institutions that focus on their own financial interests rather than the broader economic picture. Thus, it is the Fed's responsibility to manage interest rates as part of its mandate to promote maximum employment, stable prices, and moderate long-term interest rates across the economy.