Question

21 multiple choice 1 point how does the federal reserve contribute to the oversight of international business transactions? by overseeing us banks involved in foreign operations by regulating foreign trade agreements directly by managing exchange rates to stabilize international trade by controlling tariffs on imported goods

Explanation:

The Federal Reserve's role in overseeing international business transactions is mainly through its regulatory power over US - based banks. US banks are major players in international finance. By supervising these banks (especially those with foreign operations), the Fed can influence and oversee aspects of international business transactions.

• Foreign trade agreements are typically negotiated by government agencies like the U.S. Trade Representative, not the Fed.
• The Fed does not directly manage exchange rates in a fixed - rate sense (the U.S. has a floating exchange rate regime for the most part, and exchange rates are mainly determined by market forces with some indirect influence from monetary policy, but not direct management for the purpose of stabilizing international trade in the way described).
• Tariffs are set by Congress and the executive branch (under congressional authority in many cases), not the Fed.

Answer:

By overseeing US banks involved in foreign operations