The Federal Reserve System
b. is run by a congressional committee.
c. regulates only national banks.
e. None of these answers is correct.
I would say C..
I agree.
BUT...
In the current system, private banks are for-profit businesses but government regulation places restrictions on what they can do. The Federal Reserve System is a part of government that regulates the private banks
To verify whether your answer is correct, let's go through each option:
a. "is run by a congressional committee": This statement is incorrect. The Federal Reserve System is not run by a congressional committee. While it has a close relationship with Congress and undergoes regular oversight, it is an independent entity.
b. "regulates only national banks": This statement is incorrect. The Federal Reserve System regulates not only national banks but also state-chartered banks, foreign banks operating in the United States, and various other financial institutions.
c. "None of these answers is correct": This statement is correct. None of the options provided is entirely accurate.
Therefore, your answer of "C" is correct. The Federal Reserve System is not run by a congressional committee, nor does it solely regulate national banks. It consists of a combination of regional Federal Reserve Banks and the Board of Governors in Washington, D.C., and its responsibilities extend beyond national banks.