In its role as a banker for banks, the Fed:
A) regulates the total amount of money within the overall economy.
B) reduces the discount rate so that banks can obtain funds at a lower cost.
C) performs open market operations, which involve buying and selling government securities, which include treasury bonds, notes, and bills.
D) coordinates the check-clearing process for checks on behalf of any banks that are willing to pay its fees.

Question

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The Answer of In its role as a banker for banks, the Fed:
A) regulates the total amount of money within the overall economy.
B) reduces the discount rate so that banks can obtain funds at a lower cost.
C) performs open market operations, which involve buying and selling government securities, which include treasury bonds, notes, and bills.
D) coordinates the check-clearing process for checks on behalf of any banks that are willing to pay its fees.

In Its Role as a Banker for Banks, the Fed