Question

True or False
One of the functions of the Fed is to make loans to commercial banks.

Answer 1

True. One of the functions of the Federal Reserve (Fed) is to make loans to commercial banks through the 'discount window' facility.

Step-by-step explanation:

True. One of the functions of the Federal Reserve (Fed) is to make loans to commercial banks. Banks can obtain loans from the Fed through the 'discount window' facility. This is part of the Fed's role in providing banking services to commercial banks and other depository institutions.