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QuizMultiple Choice

Macroeconomics — Test

Question 1 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

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

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