Question

Which of the following is NOT a function of the Federal Reserve?

A) Levying a high tax on state bank notes
B) Conducting bank examinations
C) Handling the government's central banking function
D) Determining whether banks can borrow money from the Federal Reserve

Answer 1

The function that is NOT part of the Federal Reserve's responsibilities is levying a high tax on state bank notes, as tax collection is a power vested in Congress.

Step-by-step explanation:

The question is asking which of the following is NOT a function of the Federal Reserve:

The correct answer to this question is: Levying a high tax on state bank notes. This is because the Federal Reserve's established functions include conducting the nation's monetary policy, promoting stability of the financial system, providing banking services to commercial banks and other depository institutions, and providing banking services to the federal government. The power to levy taxes is vested in Congress and is not a function of the Federal Reserve.