Question

Which of the following is not a function of the Fed? a. to serve as a...

Which of the following is not a function of the Fed?

a.

to serve as a fiscal agent (bank) for commercial banks.

b.

to hold depository institutions' reserve.

c.

to clear the checks for member banks.

d.

to borrow money from the banks

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Answer #1

ANswer

Option d

to borrow money from the banks

The Fed works as a bankers bank so it lends money to them and holds their deposits of reserves but do not borrow money from them. It also clears checks for member banks.

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