All federally insured commercial banks must belong to the Federal Reserve System.

Federally Insured Commercial Banks

Financial institutions engaged in deposit-taking and lending that are covered by a federal insurance program to protect depositors' funds in the event of the bank's failure.

Federal Reserve System

The central banking system of the United States, responsible for monetary policy, financial regulation, and the stability of the financial system.

Acquire an understanding of the purpose and mechanisms of finance-related organizations, which include banks, credit unions, and the Federal Reserve.

Verified Answer

Frank HendricksMay 12, 2024

Final Answer :

False

Explanation :

Not all federally insured commercial banks are required to be members of the Federal Reserve System; membership is optional for state-chartered banks and mandatory only for national banks.

Learning Objectives

Acquire an understanding of the purpose and mechanisms of finance-related organizations, which include banks, credit unions, and the Federal Reserve.

All federally insured commercial banks must belong to the Federal Reserve System.

Definitions

Learning Objectives

Learning Objectives

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