Why Might Congress Benefit from the Fed Being Self-Financed

question 33

Multiple Choice

Why might Congress benefit from the Fed being self-financed?

• A)Self-financing increases Congressional control over the Fed.
• B)Self-financing reduces the Fed's exposure to external pressures.
• C)Self-financing gives the Fed an incentive to expand the money supply, which ultimately results in Congress having additional funds to spend.
• D)Congress does not benefit from the Fed being self-financed; Congress is obliged by the Constitution to allow the Fed to be self-financed.

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Definitions:

Continuing Operations

The segments or parts of a business expected to continue operating and contributing to earnings into the foreseeable future.

Layoffs

A reduction in a company's workforce to save costs or due to organizational restructuring.

Cash Flow

The collective sum of money that moves through a business, significantly contributing to its capacity to manage cash flow needs.

Accruals

Accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.