This cartoon shows that the Federal Reserve System is —
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1 point
the federal government’s bank
responsible for legislative purchases
the federal government’s tax collector
accountable for legislative actions
Based on the given options, the correct answer is:
The Federal Reserve System is the federal government's bank.
To determine the correct answer, we need to analyze the given options and understand how the Federal Reserve System functions.
The Federal Reserve System is not the federal government's bank (option 1). The Federal Reserve is actually an independent entity that acts as the central banking system of the United States.
The Federal Reserve System is also not responsible for legislative purchases (option 2). Legislative purchases typically refer to government spending on items such as infrastructure or defense, which is determined and authorized by Congress.
While the Federal Reserve does collect certain taxes on behalf of the federal government, it is not the federal government's primary tax collector (option 3). The main tax collection agency in the United States is the Internal Revenue Service (IRS), which operates independently from the Federal Reserve.
Considering the remaining option, we can determine that the Federal Reserve System is accountable for legislative actions (option 4). This means that the Federal Reserve is responsible for implementing and executing monetary policies, which can have an impact on the economy and influence legislative actions.
Therefore, the correct answer is that the cartoon shows that the Federal Reserve System is accountable for legislative actions.