What is the main purpose of the Federal Reserve System? - ProProfs Discuss
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What is the main purpose of the Federal Reserve System?



A. To promote fiscal stability and provide stimulus money to balance the economy
B. To promote economic growth
C. To create inflation and deflation
D. To keep the banking industry strong enough to ensure a supply of currency
Asked by Ellsworth, Last updated: Jan 05, 2020

This question is part of

Generalist EC-6 191 (Practice Test 1)

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1 Answer

John Smith

John Smith

Answered Sep 09, 2016

To keep the banking industry strong enough to ensure a supply of currency -the main purpose of the federal reserve system (frs) is to keep the banking industry strong enough to ensure a supply of currency. when the banking industry is strong and there is an adequate supply of currency, fiscal stability and economic growth are more likely to occur. however, the direct role of the frs is not to provide stimulus money to balance the economy (a), promote economic growth (b), nor create inflation...Read More
 

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