Question

Which of these is a banking activity of the Fed?

Answer 1

Storing money for banks is a banking activity of the Fed.

• Storing money for banks

Explanation:

The Federal Reserve appraises that most of the money available for use today is outside the United States. General society ordinarily gets its money from banks by pulling back money from computerized teller machines (ATMs) or by liquidating checks.

At the point when the national bank requests that a business bank hold more cash available for later, this suggests the bank will have less cash to obtain the financial specialists and this will prompt an expansion in the loan cost. So Storing cash for banks is a financial movement of the Fed.