Why do you think it is important that we have a Federal Reserve Board?

QUESTION

Why do you think it is important that we have a Federal Reserve Board?

What will be an ideal response?

ANSWER

Answer: The Federal Reserve Board of Governors works with the president’s administration to formulate economic policy. Chief among their responsibilities is to set monetary policy, using interest rates and other tools to control the money supply and the supply of credit in the economy. Without this oversight and regulation, financial fears more easily turn to financial panic.
Explanation: The Fed is important for many reasons. Its oversight and regulation of the largest economy in the world is central to its ability to run as smoothly as it does. Although it often is shown to be imperfect, this large economy might fare far worse without the important role the Fed plays.