Question

The Federal Reserve manages the nation’s currency and money supply by

manipulating interest rates and acting as a lender to banks.
overseeing bank collections and payments on loans.
dictating criteria and setting loan terms for banks.
offering investment advice and adjusting interest rates.

Answer 1

manipulating interest rates and acting as a lender to banks.

The Fed conducts monetary policy (e.g., setting the federal funds rate, open market operations, reserve requirements) and serves as lender of last resort to depository institutions.