What is the primary role of the Federal Reserve?

The primary role of the Federal Reserve, often referred to as the Fed, is to regulate the U.S. monetary system. This includes managing the country's money supply and interest rates to promote stable economic growth, control inflation, and influence employment levels. By adjusting interest rates, the Federal Reserve can either encourage borrowing and spending during an economic downturn or cool off an overheating economy.

The Federal Reserve implements monetary policy through various tools, such as open market operations, the discount rate, and reserve requirements. These actions collectively impact the economy and help maintain financial stability, which is crucial for the overall health of the economy.

Other options do not align with the Federal Reserve's responsibilities. Auditing governmental expenditures pertains to oversight and accountability in government spending, which falls under the purview of entities like the Government Accountability Office, not the Federal Reserve. Overseeing international trade is typically managed by the Department of Commerce or U.S. Trade Representative. Managing national parks is the responsibility of the National Park Service, which focuses on conservation and public recreation. Thus, the Federal Reserve's central role is clearly focused on the regulation and oversight of the monetary system.