The __________
blank
is a network linking over 5,300 banks with the Federal Reserve that is used to transfer deposits and make loan payments between participants.

Question

The __________
blank
 is a network linking over 5,300 banks with the Federal Reserve that is used to transfer deposits and make loan payments between participants.

BlackTom AI · Accepted Answer

The question presents a fill-in-the-blank about a network that links over 5,300 banks with the Federal Reserve for transferring deposits and loan payments among participants.
Option 1: CHIPS. CHIPS is the Clearing House Interbank Payments System, which is a private-sector funds transfer system used primarily for large-value U.S. dollar payments, not the Federal Reserve network described here.
Option 2: NASDAQ. NASDAQ is a stock exchange and trading platform, not a Fed-related interbank payment network, so it does not fit the description of transferring deposits or loan payments between banks.
Option 3: Fedwire. Fedwire is the Federal Reserve's real-time gross settlement system that connects thousands of banks and other depository institutions to transfer funds and settle payments directly with the Fed, matching the description in the question.
Option 4: SWIFT. SWIFT is a global messaging network used for international financial communications and cross-border payments, but it is not the Fed’s domestic interbank settlement network linking U.S. banks with the Federal Reserve.
Option 5: ACH. The Automated Clearing House (ACH) is a batch-processing electronic funds transfer system used for smaller-value payments like payroll or bill payments, typically not the real-time, Fed-linked network described in the prompt.
Overall, the performance characteristics described—a network linking over 5,300 banks with the Federal Reserve for deposits transfers and loan payments—align with a Fed-operated, real-time settlement system rather than private- or international-payment networks or batch systems. Each alternative represents a different type of payments infrastructure, and the features in the prompt distinguish the Fed-specific settlement network from the other options.

The __________ blank is a network linking over 5,300 banks with the Federal Reserve that is used to transfer deposits and make loan payments between participants.

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