In: Economics
The following is the ONLY type of financial instutions considered members of the Federal Reserve System:
Question 19 options:
Commercial Banks |
|
Investment banks |
|
Pension Funds |
|
Insurance Companies |
Answer : The answer is option A.
Federal Reserve System is a Central Bank. Commercial banks are financial institutions. Central Bank is also known as banker's bank. This means that commercial banks are the member of Central Bank and this Central Bank is the bank of commercial banks. Therefore, option A is correct.