Which of the Following Is Not a Power of the Federal

question 40

Multiple Choice

Which of the following is not a power of the Federal Reserve Board?

• A) the power to increase or decrease the interest rate it charges on the loans it extends to member banks
• B) the power to control the reserve requirement
• C) the power to buy and sell government securities in order to increase or decrease the supply of money in the economy
• D) the power to manipulate the interest rate charge by one bank to another on loans in the federal funds market
• E) the power to enforce the federal government's antitrust policies

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Definitions:

Cash Flows

The net amount of cash being transferred into and out of a business, typically categorized into operating, investing, and financing activities.

Present Value

Present Value refers to the value today of an amount of money that is to be received in the future, adjusted for a certain rate of return.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Dollar Amount

The value of something represented in terms of the currency of the United States, expressed as a quantity of dollars.