CLEP US Government

Answer: C - The Federal Reserve Board (or “the Fed”) is primarily responsible for monetary policy. Monetary policy is basically controlling how much money is being made available to the economy through banks. One of the easiest ways to do this is to set interest rates. When interest rates are low, people are more likely to borrow money to make big purchases. When they are high, people are less likely to borrow money and therefore less likely to make big purchases.