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Choose two ways that the Fed supervises financial institutions.

[Mark all correct answers]

A. By sending examiners to their location.
B. By offering free capital to banks.
C. By lending money to other countries.
D. By investigating how they interact with each other.
E. By monitoring international trade.
F. By making sure people pay taxes.



Answer :

GinnyAnswer

Final answer:

The Fed supervises financial institutions through on-site examinations and monitoring their interactions.


Explanation:

The Fed supervises financial institutions through:

  • Sending examiners to their location: The Fed sends examiners to conduct on-site reviews of banks to ensure they are financially sound.
  • Investigating how they interact with each other: The Fed supervises the interactions of financial institutions to maintain the stability of the financial system.

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