Question

In: Economics

The following is the ONLY type of financial instutions considered members of the Federal Reserve System:...

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

Solutions

Expert Solution

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.


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