According to the video, which of the following is not a function of the Fed? Multiple Choice collecting tax revenues from people and companies influencing interest rates O setting the reserve requirement for banks providing financial services for banks

According to the video, which of the following is not a function of the Fed? Multiple Choice collecting tax revenues from people and companies influencing interest rates O setting the reserve requirement for banks providing financial services for banks

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.

Question

According to the video, which of the following is not a function of the Fed?
Multiple Choice
collecting tax revenues from people and companies
influencing interest rates
setting the reserve requirement for banks
providing financial services for banks
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