The explicit functions given to the Fed by the Congress include all of the following except:

Question

Quizplus · Accepted Answer

The Federal Reserve's explicit functions include regulating financial institutions, serving as a lender of last resort, and providing banking services to the U.S. government. However, holding the nominal interest rate no more than 2 percent above the real interest rate is not an explicit function given to the Fed by Congress.

The Explicit Functions Given to the Fed by the Congress