Concerning monetary policy, which of the following is correct?
A) The Federal Reserve is responsible for conducting monetary policy.
B) The U.S. Treasury controls the money supply through its buying and selling of U.S. securities.
C) The Treasury is a monetary agency with responsibilities very similar to those of the Fed.
D) The Federal Reserve System issues U.S. securities.

Question

Quizplus · Accepted Answer

The Federal Reserve is responsible for conducting monetary policy. This involves setting interest rates and adjusting the money supply to achieve economic goals such as low inflation and full employment. The U.S. Treasury does play a role in managing the government's finances and issuing U.S. securities, but it is not responsible for conducting monetary policy like the Fed.

Concerning Monetary Policy, Which of the Following Is Correct