The Federal Reserve System (the 'Fed) was created by the Federal Reserve Act, passed by Congress in 1913. and began operations in 1914. Like all central banks, the Federal Reserve is a government agency.

All of the following statements are true about the Fed except:

a. the Federal Reserve is the "lender of last resort

b. it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets

c. it focuses on making a profit like commercial banks)

d. it has the power to supervise and regulate banks

c. it focuses on making a profit like commercial banks.

Explanation:

The Federal Reserve System (the 'Fed) was created by the Federal Reserve Act, passed by Congress in 1913. The Fed began operations in 1914. It was founded by President Woodrow Wilson under the Federal Reserve Act, which was aimed at backing each banks in order to put a definitive end to the bank panics of the 1800s.

Like all central banks, the Federal Reserve is a government agency that is saddled with the following responsibilities;

- Controlling the issuance of currency in United States of America (it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets).

- Providing banking services to all the commercial banks in the country (the Federal Reserve is the "lender of last resort).

- Regulating banking activities (it has the power to supervise and regulate banks).

c.

clarify customers’ doubts only when asked.