What is one of the key roles of the Federal Reserve?

The correct answer highlights one of the primary functions of the Federal Reserve, which is to regulate the U.S. monetary and financial system. The Federal Reserve, as the central bank of the United States, plays a crucial role in managing the nation's money supply and maintaining the stability of the financial system. This includes setting interest rates, which influence inflation and employment levels, and overseeing banking institutions to ensure their safety and soundness.

By regulating the monetary system, the Federal Reserve helps promote economic stability and growth. Its actions affect not only the economy as a whole but also individuals and businesses, as they impact borrowing costs and economic confidence. The Federal Reserve's role in maintaining financial stability is vital, especially during economic downturns or financial crises, where it may take measures such as lowering interest rates or implementing quantitative easing to stimulate the economy.

The other choices do not correctly represent the Federal Reserve's roles: establishing federal tax rates falls under the purview of Congress, managing public investments is not a direct function of the Federal Reserve, and while it may provide certain resources and information, it does not specifically offer advisory services to small businesses as a primary role.