Question

Which of the following does not describe some of the functions of the Federal Reserve​ Bank? A. Regulates the money supply and intervenes in foreign exchange markets. B. Acts as the​ government's fiscal​ agent, supervises banks and acts as a lender of last resort. C. Supplies the economy with fiduciary​ currency, provides a system for check clearing and holds depository​ institutions' reserves. D. Acts as a medium of​ exchange, a unit of​ accounting, a store of value and a standard of deferred payment.

Answer 1

Answer: Option (D) is correct.

Explanation:

Federal Reserve Bank is the reserve bank of united states. There are some functions of central bank such as:

(a) Banker's Bank

(b) Monetary regulatory authority

(c) Lender of last resort

(d) Controller of credit

(e) It is a clearing house for the transfer and settlement

Option (D) explain the functions of money and these functions are not related with the Federal Reserve Bank.