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Which of the following was not an original responsibility of the Federal Reserve? a. Issue currency...

Which of the following was not an original responsibility of the Federal Reserve?

a. Issue currency (Federal reserve notes)

b. Conduct monetary policy

c. Smooth seasonal variations in credit availability and interest rates

d. Limit the extent of banking panics (financial crises)
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Answer #1

Limiting the extent of the banking panicks is not one of the primary functions of Federal Reserve but the the Federal Reserve is strived towards limiting any kind of panic in the entire economy so it will be trying to control all such panic in the financial world although it is not the primary functions, by infusion of bailout packages.

All the other statements are related to the primary functions of Federal Reserve.

Correct answer will be option ( d ) limit the extent of banking panicks.

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