Which of the Following Is Not a Power of the Federal

question 73

Multiple Choice

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

• A)Setting the prime interest rate
• B)Issuing Federal Reserve notes
• C)Buying and selling U.S.government securities
• D)Extending loans to member banks
• E)Clearing checks

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Definitions:

Foreign Investment

The inflow of capital from external investors into a country to purchase assets such as property, stocks, or businesses.

Savings Rate

is the proportion of disposable income that households save rather than spend on consumption.

Federal Budget

A government plan for revenue and spending for a coming fiscal year, detailing how funds will be allocated among various government departments and programs.

Industrial Country

Refers to a nation with a well-developed industrial base, where manufacturing and other industries contribute significantly to the economy.