Question

by supervising and regulating the operation of the financial system, the Fedis attempting to:

a		Promote a healthy economy
b		Foster an efficient and competitive financial system
c		Support a stable economy
	d	All of the above

Answer 1

answer is D.

Fedral Reseve is US central bank and it main function can broadly classified into three catagories

• To conduct the monetary policy for the country
• To regulate and supervise the banking system in the county
• To promote financial stability in the country.

So Fed is basically responsible for efficient and competitve financial system. Other than that, Fed also helps in promoting economic activity in the country. For example if the county's ecomony is slow, Feds can reduce the interest rates in the market which will allows institution to avail loan at cheaper rate which in turn lead to increase in economic activity ( keeping everything else constant)