Which of the following statements is correct? I. The Fed can periodically and without warning examine member commercial banks to ensure that they are conforming to current banking standards.
II) The Fed helps the government collect certain tax revenues and aids in the purchase and sale of government securities.

Question

Quizplus · Accepted Answer

Both statements are correct. The Fed has the authority to conduct periodic and surprise examinations of member banks to ensure compliance with regulations. Additionally, the Fed has the responsibility of facilitating the collection of certain tax revenues for the government and conducting the purchase and sale of government securities to manage monetary policy.

Which of the Following Statements Is Correct? I