In the area of bank supervision,which of the following are functions of the Federal Reserve Banks?
I. Examinations of state member banks
II. Approval of member bank and bank holding company acquisitions
III. Deposit insurance

Question

Quizplus · Accepted Answer

I. Examinations of state member banks is a function of the Federal Reserve Banks.
II. Approval of member bank and bank holding company acquisitions is also a function of the Federal Reserve Banks.
III. Deposit insurance is a function of the Federal Deposit Insurance Corporation (FDIC), not the Federal Reserve Banks. Therefore, choice C and D can be eliminated. 
Therefore, the best choice is B, which includes both functions of the Federal Reserve Banks.

In the Area of Bank Supervision,which of the Following Are