Other

Question

What has been an advantage of

commercial banks being a member of the

Federal Reserve?

A. Commercial banks can be insured or take out additional

loans to protect themselves.

B. Commercial banks don't have to pay fees and can avoid

penalties.

C. Commercial banks are free to regulate any one of the

twelve federal reserve banks.

D. Commercial banks can operate however they want.

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Answer

A. Commercial banks can be insured or take out additional loans to protect themselves.

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Being a member of the Federal Reserve System allows commercial banks to have access to the Federal Reserve's discount window, which provides short-term loans to banks...