The powers of the Federal Reserve System do not include:
A)the ability to buy and sell U.S.government securities.
B)the ability to extend loans to commercial banks.
C)the ability to provide deposit insurance for customers of member banks.
D)the ability to impose reserve requirements on both member and nonmember commercial banks.
E)the authority to clear checks.

Question

Quizplus · Accepted Answer

The ability to provide deposit insurance for customers of member banks is not a power of the Federal Reserve System. This is instead the role of the Federal Deposit Insurance Corporation (FDIC), which is a separate government agency.

The Powers of the Federal Reserve System Do Not Include