Question

Which function of the Federal Reserve System means the Federal Reserve acts like a bank for other banks?

(1 point)
Responses

setting monetary policy

setting monetary policy

providing financial services

providing financial services

setting foreign trade agreements

setting foreign trade agreements

monitoring unfair business practices

Answer 1

The correct response is **providing financial services**. This function refers to the Federal Reserve acting as a bank for other banks, offering services such as check clearing, electronic funds transfers, and acting as a lender of last resort.