Which of the following statements is true?
A)The annual income from securities far exceeds the annual expenditures of the Federal Reserve Bank.
B)The Federal Reserve Bank's president is elected for a fourteen year renewable term.
C)All banking services provided by the Federal Reserve Bank are free of charge.
D)The Federal reserve Bank delegates its open market operations to smaller commercial banks.

Question

Quizplus · Accepted Answer

The Federal Reserve earns income from the interest on government securities and loans to depository institutions, among other sources. This income typically exceeds its operating expenses, including the interest paid on reserve balances and reverse repurchase agreements, contributing to its financial operations and allowing it to transfer excess funds to the U.S. Treasury.

Which of the Following Statements Is True