Which of the following is not a function of the Fed?
A) to provide check-clearing services
B) to hold depository institutions' reserves
C) to serve as the government's banker
D) to serve as the borrower of last resort
E) none of the above

Question

Quizplus · Accepted Answer

The Federal Reserve (Fed) does not serve as the borrower of last resort; it serves as the lender of last resort. This means it provides banks with liquidity in times of financial crisis to prevent the banking system from collapsing.

Which of the Following Is Not a Function of the Fed