Which of the following is not a function of the Federal Reserve System? A. It acts as a central bank to the central government. B. It acts as a banker to banks. C. It determines tax levels in conjunction with the U. S. Treasury. D. It sets monetary policy.

C. It determines tax levels in conjunction with the U. S. Treasury

Explanation:

The banking system of USA is called federal Reserve, it was created on 23rd December 1913 when Federal Reserve Act was enacted.

Federal reserve was created due to a a series of financial panics, after the panics federal government desired to control the monetary system to alleviate financial crisis. It has three functions: Supervising and regulating the banking operations, maintain an efficient payments system, deciding the monetary policy.

As the banks needed a source of reserve to prevent panics that resulted in the runs and used to drive them out of business, the panic of 1907 severely affected the banking system, it was this panic led the government to form Federal Reserve.

C. It determines tax levels in conjunction with the U. S. Treasury.

Explanation:

A federal reserve system is a central banking system of the united states and is enacted by the foreign reserves act and measures the series of the financial panics. Established as a key objective to the monetary policy and maximizing employment and stabilizes the prices. The united states treasury is an entity outside the Central banks that the prints the currency used.