When we speak of the Fed's responsibility to supervise member banks,we are saying that the
A) Fed's advisory board will help member banks manage their assets and liabilities.
B) Fed's Open Market Committee will advise member banks regarding the purchase and sale of government securities.
C) Fed's Board of Governors will advise member banks regarding the appropriate interest rates to be charged on various loans.
D) Fed will advise member banks regarding the nature of loans and compliance with regulations.
E) Fed will advise member banks about the proper control of each individual bank's money supply.

Question

Quizplus · Accepted Answer

When we speak of the Fed's responsibility to supervise member banks, it refers to the Fed advising member banks regarding the nature of loans and ensuring compliance with regulations. This responsibility includes monitoring the safety and soundness of individual banks and ensuring they are operating in a safe and sound manner in accordance with federal laws and regulations. The Fed conducts regular bank examinations and requires banks to maintain certain levels of capital and liquidity to ensure they can withstand unexpected losses or financial shocks.

When We Speak of the Fed's Responsibility to Supervise Member