Primary dealers are_____________ that deal directly with the Fed.
A)5 large insurance companies
B)18 large banks and securities firms
C)the 12 regional Federal Reserve banks
D)both a and c are correct.

Question

Quizplus · Accepted Answer

Primary dealers are large banks and securities firms that deal directly with the Fed. Option A is incorrect as it mentions insurance companies and Option C is incorrect as it mentions the regional Federal Reserve banks, which are not primary dealers.

Primary Dealers Are_____________ That Deal Directly with the Fed