What role does the federal reserve play in regulating the banking system? a. a member from the federal reserve works at the headquarters of each national bank. b. the federal reserve coordinates all regulatory activities and examines banks periodically. c. the federal reserve must approve every major transaction of a bank. d. the federal reserve becomes involved only when there is a major problem in a bank.

  B. The Federal Reserve coordinates all regulatory activities and examines banks periodically.

Explanation:

  The Federal Reserve System supervises and regulates a wide range of financial institutions and activities. The primary purpose of the regulations is to protect the individual consumer against banking practices that are deceptive and could potentially cause financial harm.

  The rules the Federal Reserve applies are usually in response to laws enacted by the legislature.

  I hope this answer helps you.