What is the function of the Federal Reserve System?

The Federal Reserve System serves a crucial role in regulating the U.S. monetary and financial system. It operates as the central bank of the United States and is responsible for implementing monetary policy, which includes managing interest rates and controlling the money supply to promote economic stability and growth. The Federal Reserve also supervises and regulates banks to ensure a stable and secure financial system.

This choice aligns with the core purpose of the Federal Reserve, which is to maintain economic stability, provide a safe and flexible financial system, and serve as a bank for the U.S. government. Other options, such as issuing driver's licenses or managing national parks, are functions of state or local government agencies rather than the Federal Reserve. Similarly, enforcing federal laws is the responsibility of law enforcement agencies, not the central banking system. Therefore, the correct answer encapsulates the essential role of the Federal Reserve in the broader economic framework of the nation.