Which correctly describes the Federal Reserve?
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1 point
A key independent agency of the federal government
The President's private bank account
A department within the executive branch
The President's official residence
A key independent agency of the federal government
The correct answer is: A key independent agency of the federal government
The correct answer is: "A key independent agency of the federal government."
To arrive at this answer, let's go through the process of elimination:
Option 2: "The President's private bank account" is incorrect because the Federal Reserve is not the President's personal account. It is a separate institution that operates independently.
Option 3: "A department within the executive branch" is also incorrect. While the Federal Reserve is a governmental entity, it is not a department within the executive branch. It operates independently from the executive branch.
Option 4: "The President's official residence" is incorrect. The President's official residence is the White House, not the Federal Reserve.
Therefore, the correct choice is option 1: "A key independent agency of the federal government." The Federal Reserve is indeed an independent agency that serves as the central bank of the United States and regulates the nation's monetary and financial system.