Certified Financial Planner (CFP) Practice Exam 2025 – All-in-One Study Guide for Exam Success!

The Federal Reserve, commonly referred to as the Fed, has several key responsibilities that are central to its role in the U.S. economy. These include conducting monetary policy, supervising and regulating banking institutions, maintaining stability in the financial system, and providing financial services.

The choice that is not a primary responsibility of the Federal Reserve is related to maintaining fair practices between securities dealers. This function typically falls under the purview of the Securities and Exchange Commission (SEC), which is the primary regulatory authority overseeing the securities industry. The Fed’s focus is more on broader economic stability, including controlling inflation, managing employment levels, and fostering sustainable economic growth, rather than ensuring fairness among securities firms.

In contrast, maintaining sustainable long-term economic growth, maintaining price levels in order to support that growth, and promoting full employment are all aligned with the Federal Reserve's objectives. These goals represent the Fed's dual mandate: to promote maximum employment and stable prices, which helps guide its monetary policy decisions.