Which of the Following Statements Is Correct

question 18

Multiple Choice

Which of the following statements is correct?

• A)The Fed has difficulty covering its normal expenses, but is reluctant to ask Congress for money.
• B)The Fed is dependent on the annual appropriations it receives from Congress.
• C)The Fed's profits are substantial, even when compared to the largest U.S. corporations.
• D)At one time the Fed made substantial profits, but falling interest rates have greatly reduced them.

---

Definitions:

Owner's Equity

The residual interest in the assets of a company after deducting liabilities.

Merchandise Sold

The total goods or inventory that have been sold to customers within a specific period, generating revenue for the business.

Inadvertently Overstated

When financial figures are unintentionally reported higher than their actual values.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.