The Principal Objective of the Federal Reserve System Is to

question 86

Multiple Choice

The principal objective of the Federal Reserve System is to

• A)circulate coins and paper Federal Reserve Notes.
• B)subsidize the income of member banks.
• C)help stabilize the economy through monetary policy.
• D)make profits to remit to the Treasury Department.

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Definitions:

Unamortized Premium

The portion of the bond premium that has not yet been amortized or gradually written off against earnings over the life of the bond.

Open Market

A market structure where economic transactions are conducted freely and transparently, allowing for unrestricted competition.

Gain or Loss

The financial result that occurs when the selling price of an asset differs from its original purchase price.

Bonds

Fixed income investment products representing loans made by an investor to a borrower, typically corporate or governmental, which pay periodic interest payments.