The Federal Reserve System Performs Many Functions but Its Most

question 34

Multiple Choice

The Federal Reserve System performs many functions but its most important one is:

• A) Issuing currency
• B) Controlling the money supply
• C) Providing for check clearing and collection
• D) Acting as fiscal agent for the U.S. government

---

Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied at those prices.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market equilibrium price.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at various prices.

Supply Curve

A visual chart that illustrates how the quantity of a product or service provided correlates with its price over a specific time frame.