The Federal Reserve System Was Created to Do Which of the Following

question 66

Multiple Choice

The Federal Reserve System was created to do which of the following?

• A) Designate certain governmental powers as reserved for the federal government
• B) Provide a secondary military force in times of war
• C) Pay off the national debt
• D) Stabilize nationwide economic activity by controlling the amount of money in circulation
• E) All of these are correct.

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Definitions:

"Passed Through"

A process in which financial benefits or obligations are transferred from one party to another, often used in the context of mortgage-backed securities.

Unit Investment Trusts

Fixed portfolios of stocks, bonds, or other securities assembled by a sponsor, which are then sold in shares to investors, offering a fixed return over the trust's lifespan.

Fixed-Income Portfolios

Investment portfolios that consist primarily of debt securities like bonds, which are designed to provide a fixed return through interest payments to investors over time.

Actively-Managed

A strategy where a fund's investments are frequently adjusted by a manager or management team in an attempt to outperform the market.