Which Is Not a Function of the Fed

question 148

Multiple Choice

Which is not a function of the Fed?

• A)Conducting monetary policy
• B)Serving as a lender of last resort
• C)Providing financial services such as check clearing to commercial banks
• D)Directly financing U.S. budget deficits

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Definitions:

Negative Externality

A cost that affects a party who did not choose to incur it, often associated with the consumption or production of goods and services.

Price

The sum required, expected, or disbursed as a purchase price for an item.

Government-Provided Goods

Goods and services offered to the public by the government that might not be provided by the market or would be underprovided, such as public parks and national defense.

Explicit Fee

A clear and defined charge for a service or product that is not hidden or implicit.