Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN: 9780078747663
Author: McGraw-Hill
Publisher: Glencoe/McGraw-Hill School Pub Co
Question
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Chapter 15, Problem 3AA
To determine

To choose: The suitable word that best completes the sentence.

Expert Solution & Answer
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Explanation of Solution

The suitable word that best completes the sentence is function.

The Federal Reserve performs functions as follows:

  • Clearing checks,
  • Acting as fiscal agent for the Federal government,
  • Supervising the banks,
  • Holding the reserves,
  • Supplying paper currency,
  • Regulating the money supply.

One of the functions is check clearing, by which a check deposited in one institution is transferred to the depository institution of the issuer.

Economics Concept Introduction

Introduction:

Federal Reserve- The Federal Reserve was formed in the year 1913 by Congress to act as the central banking organization of nation. It is a system or network of banks. The Federal Reserve or Fed is the body responsible for forming the monetary policies in the United States.

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