Question

Which of the following is one of the Federal Reserve System's two policy goals (also called its dual mandate)?
	a. Economic growth
	b. Maximum employment
	c. Increasing levels of personal wealth
	d. Financial stability

Answer 1

The Federal reserve operates with the aim of achieving the two goals while formulating the monetary policy, these areprice stability and maximum employment which are known as the dual mandate in the aggregate format.

Maximum employment, implies that all Americans who are willing to work are gainfully employed,

Price stability implies reduce the volatility in the prices for the goods and services purchased in the economy.

So the correct option is option b

Financial stability may not always imply price stability, it may even imply the debt in the economy is at very low levels of debt, so option d may not be correct.

Option a and c are incorrect outrightly as they are not mentioned in the objectives of the Fed.