Question

review question (drag circle to correct answer) why does the federal reserve alter monetary policy? a. to regulate the banking industry b. to provide services to member banks c. to enable banks to clear checks d. to lessen the effect of natural business cycles

Explanation:

The Federal Reserve uses monetary policy to manage economic growth, inflation, and unemployment related to business - cycles. Altering monetary policy can smooth out the peaks and troughs of natural business cycles. Options a, b, and c are functions of the Fed but not the main reason for altering monetary policy.

Answer:

d. To lessen the effect of natural business cycles