Which entity operates Fedwire?

Which entity operates Fedwire?

• A. Bureau of Economic Analysis
• B. U.S. Mint
• C. Federal Deposit Insurance Corporation
• D. Federal Reserve

Answer: (D)

Fedwire is the real-time gross settlement system for large-value interbank payments, run by the Federal Reserve Banks. It provides final settlement of funds as institutions transfer money, which helps manage credit risk and keep the payments system stable. The Federal Reserve operates Fedwire as part of the U.S. payments infrastructure under the oversight of the Board of Governors. The other entities don’t run this payment network: the Bureau of Economic Analysis is a statistical agency, the U.S. Mint handles coin production, and the Federal Deposit Insurance Corporation insures deposits and supervises banks but does not operate Fedwire.

Fedwire is the real-time gross settlement system for large-value interbank payments, run by the Federal Reserve Banks. It provides final settlement of funds as institutions transfer money, which helps manage credit risk and keep the payments system stable. The Federal Reserve operates Fedwire as part of the U.S. payments infrastructure under the oversight of the Board of Governors. The other entities don’t run this payment network: the Bureau of Economic Analysis is a statistical agency, the U.S. Mint handles coin production, and the Federal Deposit Insurance Corporation insures deposits and supervises banks but does not operate Fedwire.