In which of the following scenarios are the Federal Reserve Banks most likely to intervene? a. A committee forms to create new consumer protections laws. b. A potential homeowner applies for a mortgage. c. Several member banks run low on currency and coin. d. Officials meet to debate presidential policy regarding economic expansion.

c. Several member banks run low on currency and coin.

Explanation:

The Federal Reserve Bank among other functions influences the supply of currency. In a situation whereby several member banks are low on currency and coin, the Federal Reserve Bank can increase their currency supply by buying bonds from them in exchange of currency. Thus the member banks have more currency and coins at their disposal to transact with. Other functions of the Federal Reserve bank are; the regulation and supervision of financial institutions, supplying payment services to the public and acting serving as a banking and fiscal agent of the United states government.

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