Question

What are the goals of the Federal Reserve? Choose three correct answers.

to support failing banks
to maintain stable prices
to maximize employment
to print money and mint coins
to keep moderate interest rates

Answer 1

Correct answers:
- to maintain stable prices
- to maximize employment
- to keep moderate interest rates

These three are the Federal Reserve’s statutory goals (the “dual mandate” of stable prices and maximum employment, plus promoting moderate long-term interest rates). The Fed does provide liquidity in crises but “support failing banks” is not a stated goal, and printing money/minting coins is done by the U.S. Treasury.