Answered

Which statement is true?

APeople throughout history have used only currency notes for financial transactions.
BThe Reserve Banks determine tax rates.
COnly the Federal Reserve can buy government securities.
DThe Federal Reserve affects monetary policy.
EThe Federal Reserve affects fiscal policy.

Verified Answer :

The answer is: D) The Federal Reserve affects monetary policy.

Federal reserve had the power to create monetary policies in order to regulate inflation rate in the country.

These monetary policies are being made to control either the amount of money supply or the amount of money circulated in the market. (If the amount of money held by people reduced, the inflation rate tend to go down. This is how they make the control)

Answer:

the answer is D.

Explanation:

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