Which of the Following Statements Is False

question 85

Multiple Choice

Which of the following statements is false?

• A) The Fed serves as the lender of last resort for banks.
• B) The Fed serves as a fiscal agent for the U.S.Treasury.
• C) A major responsibility of the Fed is to control the nation's money supply.
• D) The federal government is the Fed's banker.

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Definitions:

Extraordinary Item

An unusual and infrequent gain or loss that is reported separately in a company's financial statements to give a clearer picture of its regular income.

Operating Assets

Assets that are used by a business in its daily or regular operations to generate revenue, including cash, inventory, and property, plant, and equipment.

Nonmonetary Asset

Assets that are not convertible directly into a fixed amount of money and do not have a stated monetary value, such as property, equipment, and intellectual property.

Fair Value

The projected cost at which an asset or liability could be swapped between consenting, informed entities in a transaction without any special ties.