Which of the following institutions is not subject to Federal Reserve's reserve requirements?
A) A state-chartered commercial bank
B) A savings and loan association
C) A money market mutual fund
D) A credit union

Question

Quizplus · Accepted Answer

Money market mutual funds are not subject to Federal Reserve's reserve requirements as they are not depository institutions that accept deposits from customers. They invest in short-term, low-risk securities such as government bonds, commercial paper, and certificates of deposit. A, B, and D are depository institutions that accept deposits and are subject to reserve requirements imposed by the Federal Reserve.

Which of the Following Institutions Is Not Subject to Federal