Question

Which of the following variables does the Federal Reserve Bank target when regulating commercial banks

Explain bank regulation and bank supervision Question Which of the following variables does the Federal Reserve Bank target when regulating commercial banks? Select the correct answer below: O bank reserves investment choices bank capital all of the above

Answer 1

The federal reserve causes the bank reserves to change by influencing the reserve rates. It also influences the investment choices and bank capital by moderating the product offerings of the banks and regulating through guidelines. Therefore, all of the above is correct.