Question

The Federal Reserve System does all of the following EXCEPT:"

a) regulates amount of reserves required.
b) insures savings and loan association accounts.
c) engages in open market operations.
d) sets the discount rate charged to member banks.

Answer 1

The Federal Reserve System does everything listed except for b) insuring savings and loan association accounts, which is the responsibility of the FDIC.

Step-by-step explanation:

The Federal Reserve System does all of the following EXCEPT insure savings and loan association accounts. The options a), c), and d) are all functions of the Federal Reserve: a) It regulates the amount of reserves required that banks must hold;.

Cc) It engages in open market operations, which involve buying and selling government securities to influence the money supply and interest rates; and d) It sets the discount rate charged to member banks for loans they take from the Federal Reserve's discount window.

The function of insuring deposits is actually carried out by the Federal Deposit Insurance Corporation (FDIC), a different government agency.

Which insures deposits in banks and thrift institutions for at least $250,000 per depositor, per insured bank, for each account ownership category.