Which of the following is not a power granted to the Board of Governors of the Federal Reserve System?
A) Regulate competition among banks.
B) Establish margin requirements for securities.
C) Evaluate the reserve requirements of member banks.
D) Buy equity securities to maintain equilibrium in the stock market.

Question

Quizplus · Accepted Answer

The Board of Governors of the Federal Reserve System does not have the power to buy equity securities to maintain equilibrium in the stock market. Their role primarily involves regulating the banking industry, managing the nation's money supply and interest rates, and providing financial services to depository institutions, the U.S. government, and foreign official institutions. Buying equity securities to influence stock market conditions is not within their purview.

Which of the Following Is Not a Power Granted to the Board