Question

The Federal Reserve System is responsible for:

A. Insuring the deposits of individuals in private banks.

B. Chartering new banks.

C. Clearing checks between private banks.

D. All of the above

Answer 1

Checks between private banks are cleared by the various 12 regional Federal Reserve banks which are part of federal system

the Federal Reserve system is also responsible for ensuring the deposits of individuals in the private banks and that is the reason why with the help of reserve ratio it keeps a certain amount of reserves in its vault

Chartering the new bank is always done by the Federal Reserve system where it gives the permission and authority for certain things and ensure that it follows the guidelines of the Federal Reserve system of the whole and that is the reason why all the given options are correct and therefore in this regard

(D) is the answer to this question