Question

read the paragraph
the federal reserve system was created by the federal reserve act in 1913. the federal reserve, or fed, conducts economic policy in the united states. it is overseen by a board of governors composed of seven individuals who are appointed by the president of the united states and confirmed in their roles by the u.s. senate. the board is responsible for 12 federal reserve banks located throughout the country. the board ensures that the fed serves as the fiscal manager for the u.s. government. as such, the fed oversees governmental banking transactions and processes all government checks.
this question has two parts. answer part a, and then answer part b.
part a
what does the word fiscal mean in the paragraph?

1. constitutional
2. financial
3. legal

part b
which detail from the paragraph best supports the correct answer from part a?

1. \was created by the federal reserve act\
2. \confirmed in their roles by the u.s. senate\
3. \oversees governmental banking transactions\

Explanation:

Part A

To determine the meaning of "fiscal" in the context, we analyze the paragraph. The Federal Reserve (Fed) is described as the fiscal agent for the U.S. government, and it oversees governmental banking transactions and processes government checks. "Constitutional" relates to the constitution, "legal" to laws, but "financial" fits as banking and government finances are financial matters. So "fiscal" means financial.

We need to find the detail that supports "fiscal" meaning "financial". Option 1 is about the creation of the Fed, Option 2 is about Senate confirmation, neither related to finances. Option 3, "oversees governmental banking transactions", is a financial activity, so it supports the meaning of "fiscal" as financial.

Answer:

1. financial

Part B