In its role as the government's bank, the Fed:
A) keeps the U.S. currency supply in good condition.
B) reduces the discount rate so that banks can obtain funds at a lower cost.
C) coordinates the check-clearing process for checks on behalf of banks.
D) regulates the taxes rates.

Question

Quizplus · Accepted Answer

The Federal Reserve, as the government's bank, is responsible for maintaining the U.S. currency supply, ensuring that it is in good condition and replacing old or damaged currency.

In Its Role as the Government's Bank, the Fed