What is the primary purpose of the Fed, the nation's central bank?

The primary purpose of the Federal Reserve, often referred to as the Fed, is to implement monetary policy in the United States. This entails managing the nation's money supply and interest rates to promote maximum employment, stable prices, and moderate long-term interest rates. By influencing the availability and cost of credit in the economy, the Fed aims to achieve sustainable economic growth.

Through mechanisms such as adjusting the federal funds rate, conducting open market operations, and changing reserve requirements for banks, the Fed can either stimulate or cool down the economy based on current economic conditions. This role is crucial for maintaining the overall health of the economy, influencing inflation rates, and stabilizing the financial system.

The other choices do not align with the Fed's primary functions. Increasing taxes is a responsibility of fiscal policy, managed by the government, not the Fed. Regulating property values falls under the purview of real estate assessment practices and local governance rather than a central banking function. Providing loans to individuals is not a direct responsibility of the Fed; instead, it oversees monetary policy that impacts how banks lend to consumers.