Currently, the Federal Reserve Earns Approximately $90 Billion of Interest

Multiple Choice

Currently, the Federal Reserve earns approximately $90 billion of interest annually on its holdings of government bonds. Only a small portion of these earnings is required to cover the Fed's operating costs. The remainder of these earnings is

A) distributed to the member banks of the Federal Reserve system.
B) invested in corporate stocks held by the Fed.
C) returned to the U.S. Treasury.
D) loaned to commercial banks.