Accountancy, asked by lightningwolf0628, 1 month ago

What is the role of the Federal Reserve System?

It adjusts the interest rates for loans.
It ensures all financial institutions follow banking laws.
It protects up to $250,000 of customer deposits.
It regulates the business practices of stockbrokers.

Answers

Answered by vanlalchhuangimary
6

Answer:

The Federal Reserve acts as the U.S. central bank, and in that role performs three primary functions: maintaining an effective, reliable payment system; supervising and regulating bank operations; and establishing monetary policies.

Answered by Jasleen0599
0

Option B) It ensures all financial institutions follow banking laws

It ensures all financial institutions follow banking laws is the role of the Federal Reserve System.

  • Financial institutions and activities are monitored and regulated. The Federal Reserve monitors the effects on the overall financial system of each financial institution's safety and soundness.
  • The American central bank is known as the Federal Reserve System.
  • Its primary duties include, among other things, managing the nation's monetary policy and supervising banks.
  • Trillions of dollars are sent daily between banks using the Fedwire, a payment system operated by the Federal Reserve.
  • The Fed's monetary policy is decided upon by the Federal Open Market Committee, which also controls the nation's money supply.
  • Based on its assessment of the economy, the FOMC modifies the target for the overnight federal funds rate, which regulates short-term interest rates.
  • The United States' central banking system is known as the Federal Reserve System. It has a significant impact on the nation's banking sector and economy. The governor is in charge of the bank, which also has a board with six additional members. The president proposes these people, and the Senate subsequently confirms them.

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