The Fed is an agency of the U.S. Treasury Department that has the responsibility of collecting tax receipts for the IRS. The Fed is the agency of the government that ensures that the United States maintains enough gold reserves to pay any foreign debts that result from international trade.

The Fed is an agency of the U.S. Treasury Department that has the responsibility of collecting tax receipts for the IRS. The Fed is the agency of the government that ensures that the United States maintains enough gold reserves to pay any foreign debts that result from international trade.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Monetary System

Section: Chapter Questions

Problem 10PA

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Question

Which statement about the Federal Reserve Bank (the Fed) is most
accurate?
Multiple Choice
The Fed is an agency of the U.S. Treasury
Department that has the responsibility of
collecting tax receipts for the IRS.
The Fed is the agency of the government
that ensures that the United States
maintains enough gold reserves to pay any
foreign debts that result from international
trade.
The Fed is the primary government agency
involved in carrying out our nation's fiscal
policies.
The Fed manages the U.S. money supply
and interest rates.

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