When a Member of Congress Adds an Extra, Favored Expenditure

question 130

Multiple Choice

When a member of Congress adds an extra, favored expenditure for his district to a bill, he is:

• A) always paying back a contributor.
• B) setting aside his constituents' money.
• C) allotting economic development funds.
• D) earmarking the spending.

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Definitions:

Money Supply

The all-encompassing amount of economic monetary assets at a designated time.

Reserve Requirements

Central bank regulations setting the minimum amount of reserves that must be held by a commercial bank.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from the Federal Reserve's discount window.

Federal Reserve

The Federal Reserve is the central banking system of the United States, responsible for monetary policy, regulating banks, maintaining financial stability, and providing financial services.