Question

The Federal Reserve does not do which of the following :

a. It controls the supply of money.
b. It acts as a lender of last resort to banks.
c. It makes loans to any qualified business that requests one.
d. It tries to ensure the health of the banking system.

Solution

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Answered 2 months ago
Answered 2 months ago

The central bank is the national bank in charge of providing banking and financial services to the government and banks.

The central bank of the United States is the federal reserve, which provides citizens with a secure, flexible, and stable financial and monetary system. It manages and controls the US dollar money supply.

The federal reserve regulates and controls the banking system while protecting consumers' rights. It also monitors the stability and security of the banking and financial systems.

Federal Reserve is not a lending company. Hence, It does not extend credit to qualifying businesses who approach it with loan requests.

Therefore, the correct option is C.

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