The Federal Reserve Represents a "Bankers' Bank" Because

question 40

Multiple Choice

The Federal Reserve represents a "bankers' bank" because:

• A)it was created as a central clearinghouse for the transactions of the largest banks.
• B)commercial banks compete with the FED for business customers.
• C)it lobbies Congress in support of banking reform legislation.
• D)it holds the deposits of commercial banks and makes loans to banks that need additional funds.

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Definitions:

Journal Entries

These are records of all the financial transactions of a business, recorded in the chronological order in which they occur.

Units Sold

The total quantity of products or goods a company has sold during a particular period.

Adjusting Entries

Journal entries made before the preparation of financial statements to ensure that revenues and expenses are recognized in the period they occur.

Employee Discrimination Lawsuit

A legal claim brought by employees against an employer alleging unlawful discrimination in the workplace.