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 sole power to set the prime interest rate. It does, however, use its tools such as open market operations and reserve requirements to influence interest rates. The prime interest rate is set by individual banks and is influenced by market factors.

Which of the Following Is Not a Power of the Federal