As a "central bank," which of the following is TRUE regarding the Fed?
I.The Fed is a public authority that regulates the nation's banks.
II.The Fed is not allowed to provide services to commercial banks like Citibank.
III.The Fed is required to provide banking services to private citizens.
A) I
B) II
C) I and II
D) I and III

Question

Quizplus · Accepted Answer

The Fed, or Federal Reserve, is indeed a public authority that regulates the nation's banks, making statement I true. However, it does provide services to commercial banks (contrary to statement II) and is not required to provide banking services directly to private citizens (making statement III false).

As a "Central Bank," Which of the Following Is TRUE