10
QuizMultiple Choice

Agencies and Commissions

Question 10 • FL-2106020-M/J Civics Advanced Q2 Teacher-Led Remediation

Which commission is responsible for regulating banks and setting interest rates for loans?

Answer
A
Federal Reserve Board
B
Securities and Exchange Commission
C
Federal Communications Commission
D
Commodities Futures Trading Commission

Explanation

The Federal Reserve Board helps regulate banks and influences interest rates through monetary policy, especially by setting a target for the federal funds rate. That target affects the rates banks charge for many loans, though the Fed does not set every loan rate directly. The Securities and Exchange Commission oversees securities markets, while the other agencies have different responsibilities.

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