In reality, commercial banks function most like ____ of the district Federal Reserve Banks.
A)stockholders
B)regulators
C)customers
D)competitors

Question

Quizplus · Accepted Answer

Commercial banks are customers of the district Federal Reserve Banks because they hold reserves with the Fed, borrow from the Fed, and use Fed services such as check processing and wire transfers. While the Fed is a regulator of commercial banks, it also acts as their service provider and lender of last resort.

In Reality, Commercial Banks Function Most Like ____ of the District