SIE Exam Question 594: Answer and Explanation

Question: 594

All but which of the following are correct regarding the Federal Reserve?

• A. It derives its authority from Congress.
• B. It operates and oversees the U.S. payment system.
• C. It operates and oversees government spending.
• D. It supervises and regulates banks.

Correct Answer: C

Explanation:

The Federal Reserve supervises and regulates banks, and operates and oversees the U.S. payment system. It derives its authority from Congress.