Holding the money deposits of businesses and households and making loans to the public are the basic functions of

Question

Quizplus · Accepted Answer

Commercial banks and thrift institutions are the ones responsible for holding money deposits from businesses and households and making loans to the public. District banks of the Federal Reserve System do play a role in regulating the money supply, but they do not directly hold deposits or make loans. The Federal Open Market Committee and the Board of Governors also have roles in regulating the money supply, but they do not hold deposits or make loans. The Federal Deposit Insurance Corporation and the Federal Savings and Loan Insurance Corporation insure deposits and provide insurance to thrift institutions, but they do not hold deposits or make loans themselves.

Holding the Money Deposits of Businesses and Households and Making