Which of the Following Is Currently a Main Role of the Federal

question 5

Multiple Choice

Which of the following is currently a main role of the Federal Reserve's Board of Governors?

• A) regulating commercial banks
• B) regulating foreign trade
• C) controlling monetary policy
• D) A and C

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Definitions:

Infant-Industry Argument

The economic rationale for protecting new industries with tariffs or other trade barriers until they become competitive internationally.

Tariff

A tax or duty to be paid on a particular class of imports or exports, used by governments to control trade and protect domestic industries.

Import Quota

A specific limit or maximum quantity (or value) of a good permitted to be imported into a country during a given period.

U.S. Imports

Goods and services brought into the United States from other countries for sale.