What is the role of the Federal Reserve?

The Federal Reserve plays a crucial role in the US economy as the central bank, and its primary mission is to oversee the nation’s monetary system and promote economic stability. This involves managing the money supply and interest rates to achieve objectives such as maximum employment, stable prices, and moderate long-term interest rates. By adjusting monetary policy, the Federal Reserve influences inflation, employment levels, and economic growth, which are key components of overall economic health.

The other options do not encapsulate the core responsibilities of the Federal Reserve. While individual banks operate with assets, the Federal Reserve does not manage those assets directly. It also does not engage in determining personal credit scores, as this is typically the responsibility of credit reporting agencies. Additionally, the Federal Reserve's regulation does not extend solely to the stock market; rather, it encompasses a broader regulatory scope over the banking system and financial institutions, ensuring overall financial stability.