Final answer:
The function of regional Federal Reserve Banks is clearing checks. Setting reserve requirements, determining monetary policy, and setting margin requirements are responsibilities of the Federal Reserve System as a whole.
Step-by-step explanation:
An important function of the regional Federal Reserve Banks is clearing checks. While the Federal Reserve does have the authority to set reserve requirements, this power is at the system level, not at the individual regional bank level. The main functions of the Federal Reserve System as a whole include conducting monetary policy, promoting financial system stability, and providing banking services to commercial banks, depository institutions, and the federal government. In terms of monetary policy, the three traditional tools used by the Federal Reserve include open market operations, changing reserve requirements, and changing the discount rate. However, the action of clearing checks falls under the provision of banking services to commercial banks and other depository institutions.