Which of the following is not a function of the Federal Reserve System?
a. Supervising the banking system.
b. Deciding the maximum interest rates banks can charge for loans.
c. Clearing checks.
d. Acting as a bank for banks.
e. Dealing with financial crises.
B
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A perfectly competitive firm in a constant-cost industry produces 3,000 units of a good at a total cost of $36,000. The prevailing market price is $15
What will happen to the number of firms in the industry and to the industry's output in the long run? A) The number of firms remains constant and the industry's output decreases. B) The number of firms and the industry's output increase. C) The number of firms remains constant and the industry's output increases. D) The number of firms and the industry's output decrease.
Which of the following statements is false?
A) The Fed serves as the lender of last resort for banks. B) The Fed serves as a fiscal agent for the U.S. Treasury. C) A major responsibility of the Fed is to control the nation's money supply. D) The federal government is the Fed's banker.