The Federal Reserve System was created by the Federal Reserve Act, passed by Congress in 1913, and began operations in 1914. Like all central banks, the Fed is a government agency. Which of the following statements about the Fed is false? (LO3)

a. The Fed has the power to supervise and regulate banks.

b. The Fed’s goals are to promote economic growth, maintain low inflation, and watch over a smooth operation of financial markets.

c. The Fed is the “lender of last resort.”

d. The Fed is allowed to make a profit like commercial banks.