Because Congress Felt It Was Unable to Handle the Complexities

question 47

Multiple Choice

Because Congress felt it was unable to handle the complexities and technicalities required to carry out specific laws in the public interest, it created

• A) cabinet departments.
• B) independent executive agencies.
• C) independent regulatory agencies.
• D) government corporations.
• E) private associations.

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Definitions:

Required Reserves

Funds that banks must hold in reserve and cannot lend out, either as cash in their vaults or as deposits with a central bank.

Excess Reserves

Excess reserves are the funds that banks hold over and above the required reserve ratio set by the central bank, representing additional liquidity that can be used for lending.

Checkable Deposits

Bank accounts against which checks can be drawn. These include checking accounts, demand deposits, and any other deposit accounts from which checks can be written.

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.