SIE Exam Question 531: Answer and Explanation

Question: 531

The Federal Reserve Board performs which of the following actions?

• A. It sets monetary policy, but does not set tax policy.
• B. It sets tax policy, but does not set monetary policy.
• C. It sets monetary policy and tax policy.
• D. None of the above are correct.

Correct Answer: A

Explanation:

The Federal Reserve Board sets monetary policy, but does not set tax policy.