One of the Fed's functions is to be the government's banker.This function means that the
A) Fed holds bank reserves
B) Fed extends loans to the government whenever it spends more than it collects in tax revenues.
C) government's checking account is at the Fed.
D) all of the above

Question

Quizplus · Accepted Answer

The Fed acts as the government's banker, which includes holding the government's checking account, allowing the government to process its transactions, such as receiving tax revenues and making payments.

One of the Fed's Functions Is to Be the Government's