The Fed performs all of the following functions except:
A)processing the paperwork involved in buying and selling government securities.
B)collecting federal tax payments.
C)regulating state banks.
D)holding the U.S.Treasury's checking account.

Question

Quizplus · Accepted Answer

The Federal Reserve (Fed) does not regulate state banks; this is primarily the role of state banking authorities. The Fed does, however, regulate member banks, including national banks and state-chartered banks that choose to be members of the Federal Reserve System. The other options listed (A, B, and D) are indeed functions of the Federal Reserve.

The Fed Performs All of the Following Functions Except