ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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true
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false
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Either A or B
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None of the above
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Detailed explanation-1: -Custodian of the world’s largest gold storage reserve (about 5, 620 metric tons)
Detailed explanation-2: -Myth #3: The Fed owns and stores gold. Truth: The Fed does not own gold and only stores a very small amount of the U.S. Treasury’s gold. The Fed does not own gold. The Gold Reserve Act of 1934 required the Fed System to transfer ownership of all of its gold to the Department of the Treasury.
Detailed explanation-3: -However, the vault today remains the world’s largest known depository of monetary gold. As of 2019, the vault housed approximately 497, 000 gold bars, with a combined weight of about 6, 190 tons.
Detailed explanation-4: -The Fed serves as a guardian for the gold and does not own it outright. Nearly 98 percent of the building’s gold is owned by the central banks of 36 foreign nations. The remaining two percent is owned by the United States and international organizations such as the IMF.