Asked by Torye Smith on Jun 13, 2024
Verified
Which is not a job of the Federal Reserve?
A) Check clearing
B) Issuing currency
C) Insuring bank deposits
D) Controlling the rate of growth of the money supply
Federal Reserve
The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and maintenance of financial stability.
Check Clearing
The process by which money is transferred from the checking accounts of the writers of checks to the checking accounts of the recipients of the checks.
Insuring Bank Deposits
A government or independent institution's act of providing a guarantee to bank depositors that their deposits will be protected up to a certain limit in the event of a bank failure.
- Comprehend the functions and duties of the Federal Reserve and commercial banks in managing monetary policy.
- Expound upon the Federal Reserve's regulatory and supervisory capacities, including the stipulated reserve requirements for commercial banking entities.
Verified Answer
KJ
Keaton JenningsJun 14, 2024
Final Answer :
C
Explanation :
Insuring bank deposits is not a job of the Federal Reserve. This task is carried out by the Federal Deposit Insurance Corporation (FDIC). The other options, check clearing, issuing currency, and controlling the rate of growth of the money supply, are all roles that are fulfilled by the Federal Reserve.
Learning Objectives
- Comprehend the functions and duties of the Federal Reserve and commercial banks in managing monetary policy.
- Expound upon the Federal Reserve's regulatory and supervisory capacities, including the stipulated reserve requirements for commercial banking entities.