The role or function performed by the Federal Reserve banks in which they record or keep the operating financial accounts of the U.S. Treasury and deliver and redeem U.S. government securities is known as the Fed's ____ function.

Question

Quizplus · Accepted Answer

The Federal Reserve acts as a fiscal agent for the U.S. Treasury by managing its financial accounts and handling the issuance and redemption of government securities. This role is crucial for the functioning of the federal government's monetary policy and public debt management.

The Role or Function Performed by the Federal Reserve Banks