The Federal Reserve is responsible for setting our monetary policy. Name two other important functions of the Fed.

Correct Answer:

Two other important functions of the Federal Reserve are supervising and regulating banks and helping maintain the stability of the financial system. The Fed examines banks to make sure they are operating safely, following laws, and keeping enough reserves and capital. It also acts as a bank for banks and for the federal government by providing services such as clearing checks, processing electronic payments, and lending to banks through the discount window when needed.