Which of the Following Is Not an Activity of the Fed

question 59

Multiple Choice

Which of the following is not an activity of the Fed?

• A)Making loans to the public
• B)Clearing banks' checks
• C)Lending funds to the Federal government
• D)Purchasing U.S.government securities
• E)Holding deposits of the U.S.Treasury

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Definitions:

Incremental Cost

The additional cost incurred to produce one more unit of a product or service.

Annual Revenues

The total amount of sales and other income generated by a business within a fiscal year.

Direct Material

Raw input directly utilized in the creation of a product, essential for the product’s production process.

Direct Labor

The wages and other compensation paid to employees directly involved in producing goods or providing services.