Question

Commercial banks are ones that handle loans and deposits, while banks of issue are allowed to print currency. What bank system is the only bank of issue in the United States?

A. The National Bank System
B. The State Bank System
C. Regions Bank System
D. The Swiss Bank System
E. The Federal Reserve System

Answer 1

The Federal Reserve System is the only bank of issue in the United States, responsible for monetary policy, bank regulation, and ensuring the stability of the financial system.

Step-by-step explanation:

The bank system that is the only bank of issue in the United States is the Federal Reserve System (E). The Federal Reserve, often abbreviated as "the Fed," was established in 1913, and it is unique among banks in that it is owned by private member banks but is publicly controlled. It is responsible for conducting monetary policy, regulating the banking industry, regulating the money supply, and providing a variety of services to the government and financial institutions. This central bank is essential for ensuring the smooth operation of the nation's financial system and has functions including, but not limited to, supervising member banks, maintaining the country's currency, clearing checks, and enforcing consumer protection laws.