Your Friend Elizabeth Says That All the Fed Does Is

Multiple Choice

Your friend Elizabeth says that all the Fed does is lower or raise interest rates. You explain that the Fed's actual mission is to

A) maintain an economically healthy and financially sound business environment.
B) set the rules and regulations with which all banks are required to comply.
C) prevent a recession at all costs.
D) manipulate the market through the regulation of reserve requirements.
E) buy and sell government bonds as part of open-market operations.