In Its Role as a Banker for Banks, the Fed

Multiple Choice

In its role as a banker for banks, the Fed:

A) regulates the total amount of money within the overall economy.
B) reduces the discount rate so that banks can obtain funds at a lower cost.
C) performs open market operations, which involve buying and selling government securities, which include treasury bonds, notes, and bills.
D) coordinates the check-clearing process for checks on behalf of any banks that are willing to pay its fees.