Control of the nation's quantity of money is handled by
A) Congress, the Federal Reserve System, and all commercial banks.
B) the Federal Reserve System.
C) the President of the United States.
D) Congress.

Question

Quizplus · Accepted Answer

The Federal Reserve System is responsible for controlling the nation's quantity of money through its monetary policy decisions, including setting interest rates and controlling the money supply. Congress has some oversight of the Federal Reserve, but does not directly control the money supply. The President does not have direct control over monetary policy. Commercial banks play a role in the creation and distribution of money, but do not have ultimate control over its quantity.

Control of the Nation's Quantity of Money Is Handled by