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CTP · Question #122

(Topic 2) One of the PRIMARY ways the Fed addresses systemic risk is by:

The correct answer is D. setting daylight overdraft limits for its member banks. See the full explanation below for the reasoning.

Question

  • (Topic 2)

One of the PRIMARY ways the Fed addresses systemic risk is by:

Options

  • Aassigning passwords and PINs to identify authorized users of its Fedwire system.
  • Bestablishing intra-day credit limits for ACH originators.
  • Csetting minimum reserve requirements for its member banks.
  • Dsetting daylight overdraft limits for its member banks.

How the community answered

(27 responses)
  • A
    19% (5)
  • B
    4% (1)
  • C
    7% (2)
  • D
    70% (19)

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