ECONOMICS (CBSE/UGC NET)

ECONOMICS

MONEY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following is NOT a way the Fed acts as the government’s bank?
A
holds the government’s money
B
deals with the banking regulations
C
issues the nation’s currency
D
sells U.S. government bonds and Treasury bills
Explanation: 

Detailed explanation-1: -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-2: -Which of the following is not one of the responsibilities of the Federal Reserve System? Explanation: It’s the Treasury Department, not the Fed, that finances government debt by issuing interest-bearing securities.

Detailed explanation-3: -Supervising and regulating banks and other important financial institutions to ensure the safety and soundness of the nation’s banking and financial system and to protect the credit rights of consumers. Maintaining the stability of the financial system and containing systemic risk that may arise in financial markets.

Detailed explanation-4: -Financial Stability Coordination & Actions. Responding to Financial System Emergencies. Cooperation on Financial Stability. Reports. Financial Stability Report. 20-Jan-2023

There is 1 question to complete.