Federal Reserve Banks directly affect the national economy by


administering consumer protection laws

increasing and decreasing the money supply

providing oversight and services for financial institutions

raising and lowering interest rates

Verified Answer :

administering consumer protection laws.

Answer:

increasing and decreasing the money supply  

raising and lowering interest rates

Explanation:

The Federal Reserve is the body responsible for conducting the government's monetary policy. Monetary policy consists of raising / lowering the interest rate and increasing / decreasing the amount of currency in circulation in the economy through the purchase or sale of government securities. Thus, the Federal Reserve acts to keep inflation under control and the economic environment healthy and prone to economic transactions.