9. (Federal Reserve System) What are the main powers and responsibilities of the Federal

Reserve System? What are its two mandates and some of it’s other goals?

The Federal Reserve System is authorized to ensure sufficient money and credit in the

banking system that is needed to support a growing economy. The Fed also has the power to buy

and sell government securities, such as bonds, to make loans to member banks, to clear in the

banking system, and to require that member banks hold a reserve requirement equal to a portion

of their deposit.

The Fed has the following goals in mind: economic growth, stable interest rates, stable

financial markets, and stable exchange rates.