10
QuizMultiple Choice

Earning Income — Test

Question 10 • Personal Finance

What role does the Federal Reserve play? Choose three correct answers.

Answer
A
Give individual loans
B
Loan money to banks
C
Transfers any profits to the Treasury
D
Regulate the banking industry
E
Give corporate loans

Explanation

The Federal Reserve supervises and regulates banks, and it can lend money to banks, especially to support the financial system. After covering its expenses, it generally transfers its profits to the U.S. Treasury. It does not ordinarily make loans directly to businesses or individuals.

AI-written and checked against the verified answer.

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