Question

In: Finance

Which of the following is one of the four main functions of theFederal Reserve?To...

Which of the following is one of the four main functions of the Federal Reserve?



To regulate student loan debt and interest



To issue bonds to consumers and increase money supply



To grant loans to consumers with low interest rates



To serve as the banker for the government

Solutions

Expert Solution

The main function of the federal reserve is to serve as the banker for the government. Federal reserve carries on the general banking business of the government. It does it through its offices and commercial banks both public and private appointed as its agents.

The other duties such as:

To regulate student loan debt and interest.

To issue bonds to consumers and increase the money supply.

To grant loans to consumers with low-interest rates.

Are not the main functions of the federal reserve.

Answer: To serve as the banker for the government.


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