Federal Reserve district banks perform all of the following roles EXCEPT

Question

Quizplus · Accepted Answer

While the Federal Reserve district banks do play a role in influencing the federal funds rate through their open market operations, they do not have the authority to set the rate directly. The Federal Open Market Committee (FOMC), which is comprised of members from the district banks and the Board of Governors, is responsible for setting the federal funds rate. Therefore, choice C is incorrect. The district banks do manage checking clearing in the payments system, perform regulatory functions, and manage currency in circulation by issuing new Federal Reserve Notes.

Federal Reserve District Banks Perform All of the Following Roles