Which of the following is not a power of the Federal Reserve System?
A)Setting the prime interest rate
B)Issuing Federal Reserve notes
C)Buying and selling U.S.government securities
D)Extending loans to member banks
E)Clearing checks

Question

Quizplus · Accepted Answer

The Federal Reserve System does not have the power to set the prime interest rate. However, it does set the federal funds rate, which is the interest rate at which banks lend to each other overnight. The prime interest rate is set by individual banks based on the federal funds rate and other factors.

Which of the Following Is Not a Power of the Federal