Answer :
The main job of the Federal Reserve is to control inflation and increase employment. Here's how the Federal Reserve achieves these goals:
1. Controlling Inflation: The Federal Reserve aims to keep inflation in check by adjusting the interest rates. When the economy is overheating, causing prices to rise rapidly, the Federal Reserve might increase interest rates to slow down spending and borrowing, which can help stabilize prices.
2. Increasing Employment: The Federal Reserve also plays a role in promoting maximum employment. By influencing interest rates and the money supply, the Federal Reserve can encourage businesses to invest and expand, leading to more job opportunities for people. Lowering interest rates can make borrowing cheaper, encouraging businesses to invest in growth and hire more workers.
Therefore, the correct answer to the question "What is the main job of the Federal Reserve?" is Both A and B, as the Federal Reserve works to control inflation and increase employment to maintain a stable and growing economy.
1. Controlling Inflation: The Federal Reserve aims to keep inflation in check by adjusting the interest rates. When the economy is overheating, causing prices to rise rapidly, the Federal Reserve might increase interest rates to slow down spending and borrowing, which can help stabilize prices.
2. Increasing Employment: The Federal Reserve also plays a role in promoting maximum employment. By influencing interest rates and the money supply, the Federal Reserve can encourage businesses to invest and expand, leading to more job opportunities for people. Lowering interest rates can make borrowing cheaper, encouraging businesses to invest in growth and hire more workers.
Therefore, the correct answer to the question "What is the main job of the Federal Reserve?" is Both A and B, as the Federal Reserve works to control inflation and increase employment to maintain a stable and growing economy.
