Which of the following does not describe some of the functions of the Federal Reserve Bank? A. Regulates the money supply and intervenes in foreign exchange markets. B. Acts as the government's fiscal agent, supervises banks and acts as a lender of last resort. C. Supplies the economy with fiduciary currency, provides a system for check clearing and holds depository institutions' reserves. D. Acts as a medium of exchange, a unit of accounting, a store of value and a standard of deferred payment.

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Kamari York

Business

24 April, 17:34

Which of the following does not describe some of the functions of the Federal Reserve Bank? A. Regulates the money supply and intervenes in foreign exchange markets. B. Acts as the government's fiscal agent, supervises banks and acts as a lender of last resort. C. Supplies the economy with fiduciary currency, provides a system for check clearing and holds depository institutions' reserves. D. Acts as a medium of exchange, a unit of accounting, a store of value and a standard of deferred payment.

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Answers (1)

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Kylee Greer · Answer 1

Answer: Option (D) is correct.

Explanation:

Federal Reserve Bank is the reserve bank of united states. There are some functions of central bank such as:

(a) Banker's Bank

(b) Monetary regulatory authority

(c) Lender of last resort

(d) Controller of credit

(e) It is a clearing house for the transfer and settlement

Option (D) explain the functions of money and these functions are not related with the Federal Reserve Bank.