ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Federal Reserve Banks provide financial services to depository institutions including banks and credit unions, much like those that banks provide for their customers. These services include collecting checks, electronically transferring funds, and distributing and receiving cash and coin.

Detailed explanation-2: -Answer and Explanation: The Fed does not provide banking services to consumers. It is tasked with oversight over the banking sector, regulating the money supply in the economy and implementing monetary policies.

Detailed explanation-3: -2. All depository institutions, including commercial banks, savings banks, savings and loan associations, credit unions, and agencies and branches of foreign banks located in the United States, are subject to reserve requirements.

Detailed explanation-4: -When a decision is made to support the dollar’s value against another currency, the New York Fed’s Open Market Trading Desk (the Desk) buys dollars and sells that foreign currency; conversely, to reduce the value of the dollar, it sells dollars and buys the foreign currency.