What is one of the things the Federal Reserve System does?

Question

(1 point)
Responses

set income tax rates at the federal level

set income tax rates at the federal level

influence interest rates

influence interest rates

decide who can open bank accounts

decide who can open bank accounts

give loans to bank customers

give loans to bank customers

Answer 1

influence interest rates

Answer 2

Are you sure

Answer 3

Yes, I am sure. One of the primary functions of the Federal Reserve System is to influence interest rates. The Federal Reserve can adjust the federal funds rate, which influences the rates at which banks lend to each other. This, in turn, affects the interest rates on loans and mortgages that individuals and businesses receive from banks.