Most of the Fed's income comes from:

Question

Quizplus · Accepted Answer

Most of the Fed's income comes from the interest earned on the U.S. Treasury bills it owns. The Federal Reserve also earns some income from fees that it charges commercial banks for clearing checks and electronic funds transfers, but this is a relatively small portion of its overall income. The other options listed, such as interest on its loans to commercial banks and payments from the U.S. government in return for serving as its fiscal agent, also contribute to the Fed's income but are much smaller sources than income from Treasury bills.

Most of the Fed's Income Comes From