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The Federal Reserve's responsibilities include:

  • conducting the nation's monetary policy to help maintain employment, keep prices stable, and keep interest rates relatively low
  • supervising and regulating banking institutions to make sure they are safe places for people to keep their money and to protect consumers' credit rights.
  • providing financial services to depository institutions, the U.S. government, and foreign central banks, including playing a major role in clearing checks, processing electronic payments, and distributing coin and paper money to the nation's banks, credit unions, savings and loan associations, and savings banks.

The Federal Reserve System also

  • conducts research on the U.S. and regional economies.
  • distributes information about the economy through publications, speeches, educational seminars, and web sites.
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11y ago
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11y ago

It is the central bank of the United States

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Q: What is the primary role of the federal reserve?
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What is the primary tool used by the Federal Reserve when it responds to economic booms and recessions?

The primary tool used by the Federal Reserve when it responds to economic boons and recessions is the buying and selling of bonds in open market operations.The buying and selling of bonds in open market operations is the primary tool used by the Federal Reserve when it responds to economic booms and recessions.


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