Which of the following is not a way in which the Federal Reserve ("the Fed") and its policies affect banks?

A. The Fed sets a maximum on the interest rates banks can charge for loans or credit.

B. The Fed's required Reserve policy limits how much money Banks can lend out.

C. The Fed determines at what price banks must lend money to one another.

D. The Fed serves as "the bank's bank" lending other banks money when necessary.

Question

Fernando

Mathematics

23 September, 07:40

Which of the following is not a way in which the Federal Reserve ("the Fed") and its policies affect banks?

A. The Fed sets a maximum on the interest rates banks can charge for loans or credit.

B. The Fed's required Reserve policy limits how much money Banks can lend out.

C. The Fed determines at what price banks must lend money to one another.

D. The Fed serves as "the bank's bank" lending other banks money when necessary.

+1

Answers (1)

Know the Answer?

Darwin Lam · Answer 1

I think the correct answer from the choices listed above is option B. It would be the Fed's required Reserve policy limits how much money Banks can lend out that is not a way in which the Federal Reserve ("the Fed") and its policies affect banks. Hope this answers the question. Have a nice day.