Congress gave the Federal Reserve the power to ____ the banking system and _____ certain types of financial institutions.

One way of completing this sentence would be to say
"Congress gave the Federal Reserve the power to regulate
the banking system and support certain types of financial
institutions."

The Federal Reserve System is made up of
twelve Federal Reserve Banks, distributed throughout the country. The Federal Reserve
System regulates the amount of currency in circulation and ensures that banks are
keeping adequate funds in reserve. These actions serve to reassure bank customers that
their funds are protected, available, and worth their stated
value.

Federal Reserve banks support other banks located
within their districts by distributing currency, selling government-issued bonds, and
making loans to individual banks. These services allow local banks to carry out
day-to-day transactions for their individual and business
customers.