The Major Overall Purpose of the Federal Reserve System Is

question 94

Multiple Choice

The major overall purpose of the Federal Reserve System is to

• A) keep the discount rate flexible.
• B) insure the deposits of persons holding funds with banking institutions.
• C) regulate the money supply and, thereby, provide a monetary climate that is in the best interest of the economy.
• D) regulate the levels of excess reserves held by member banking institutions.

---

Definitions:

Generalizing

The process of applying the results of a study to larger populations or settings beyond the original study context.

Quasi-experiments

Research designs that lack random assignment of participants to conditions, but employ methods to closely mimic true experimental designs to infer causality.

Self-identity

A person's perception and understanding of themselves, including their characteristics, traits, and values.

Peer Approval

The positive acceptance or endorsement by one's peers or individuals of the same age or social group.