SIE Exam Question 1040: Answer and Explanation

Question: 1040

Monetary policy refers to actions taken by the __________ to control the money supply, often by targeting a specific rate of interest.

• A. Executive branch
• B. FDIC
• C. Federal Reserve
• D. U.S. Treasury

Correct Answer: C

Explanation:

Monetary policy refers to actions taken by the Federal Reserve to control the money supply, often by targeting a specific rate of interest.