Florida Teacher Certification Examinations (FTCE) Social Science Practice Test

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Master the FTCE Social Science Test. Prepare with flashcards and multiple-choice questions, each offering hints and explanations. Gear up for your certification!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is the primary purpose of the Federal Reserve System?

To regulate trade between states
To manage inflation and stabilize the economy
To administer tax collection
To oversee educational institutions

The correct answer is: To manage inflation and stabilize the economy

The primary purpose of the Federal Reserve System is to manage inflation and stabilize the economy. Established in 1913, the Federal Reserve serves as the central bank of the United States. Its main responsibilities include conducting monetary policy, which involves adjusting interest rates and influencing money supply to promote stable prices and moderate long-term interest rates. By managing inflation, the Federal Reserve aims to foster a healthy economy where employment opportunities are maximized, and businesses can grow without the threat of economic instability. Other functions of the Federal Reserve include supervising and regulating banks to ensure the safety and soundness of the financial system, providing financial services to depository institutions and the U.S. government, and maintaining stability in the financial system overall. This is fundamentally distinct from the roles concerning trade regulation, tax collection, or oversight of educational institutions, which fall outside the scope of the Federal Reserve's core mission.