SIE Knowledge of Capital Markets Question 3: Answer and Explanation

Question: 3

Which of the following is the primary role of the Department of the Treasury?

• A. To establish monetary policy
• B. To enforce fiscal policy
• C. To administer federal finances
• D. To prevent political corruption

Correct Answer: C

Explanation:

C: The primary role of the Department of the Treasury is administering federal finances, which involves receiving taxes through the IRS, paying bills, managing currency, and handling the federal government's accounts, including the public debt. Choice A is handled by the Federal Reserve. Choice B is handled by Congress. Choice D may be an indirect result of the Department of Treasury following laws and referring infractions that come to its attention to the Department of Justice.