Asked by Cianna Rodriguez on Jun 03, 2024
Verified
Which of the following is not a goal of the Fed?
A) Maintaining a high level of employment
B) Maintaining stability in interest rates
C) Maintaining high prices to encourage production
D) Maintaining stability in financial markets
E) Maintaining stability in foreign exchange markets
Foreign Exchange Markets
Markets involving the trading of currencies worldwide which facilitate currency conversion for international transactions and investments.
Stability
The condition where an economy or a financial system operates without excessive fluctuations or crises.
High Prices
Situations where the cost of goods and services are above average or expected levels.
- Identify the roles and powers of the Federal Reserve System in regulating the banking system and monetary policy.
Verified Answer
MA
Mohammad AbudoolahJun 08, 2024
Final Answer :
C
Explanation :
Maintaining high prices to encourage production is not a goal of the Fed; in fact, the Fed's primary goal is to maintain stable prices and control inflation. The other goals listed, including maintaining a high level of employment, stability in interest rates, financial markets, and foreign exchange markets, are all goals of the Fed.
Learning Objectives
- Identify the roles and powers of the Federal Reserve System in regulating the banking system and monetary policy.
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