Which of the following is not one of the functions of the Federal Reserve?

If the Fed wishes to maintain its interest rate target in the face of increased money demand it would likely

a. increase the money supply. b. decrease the money supply. c. more stringently enforce already existing banking regulations. d. propose new banking regulations. e. become more lax when it enforces already existing banking regulations.

Under a fixed exchange rate system, if the dollar price of Mexican pesos is above its equilibrium level, the peso is referred to as overvalued and the dollar is necessarily undervalued

Indicate whether the statement is true or false