Which of the following is a function of the Federal Reserve System?
I. collecting corporate income tax
II. setting personal income tax rates
III. holding bank reserves

Question

Quizplus · Accepted Answer

The Federal Reserve System's primary function is to hold bank reserves and regulate banking activities to promote a stable financial system. Collecting corporate income tax and setting personal income tax rates are functions of the Internal Revenue Service and the government's legislative and executive branches, not the Federal Reserve System.

Which of the Following Is a Function of the Federal