Question

In what respects is the Fed like a private banking institution? In what respects is it more like a government agency?

Short answer

The Fed is sort of a private banking institution and it's more sort of a authority.

Step-by-step solution

Fed System

Here, aswe all know that the Fedis that the Fed System, whichis the nation'sfinancial organization. Fed is partly a creatureof presidency and partly private.additionally,it's one in every of the key banking institutionswithin the us.

Interbank Payments

Fed issort of a private banking institution, because it offers check-clearing services to commercial banks, saving institutions, and credit unions.additionally, operates an electronic payment transfer called Fed wire,accustomed process interbank payments. Servingbecause the financial system's lender ofexpedient, Fed prevents illiquidity ofsome banks.

Private Bank Institution

Fed is moresort of a bureau, because it actsbecause the government's banker and holds government deposits. Fed also helps government in collectingtax income and aidswithin the purchase and saleof state securities.
Thus, by the above definition, the Fed issort of a private banking institution andit's moresort of a authority.