The Explicit Functions Given to the Fed by the Congress

question 161

Multiple Choice

The explicit functions given to the Fed by the Congress include all of the following except:

• A)regulating financial institutions.
• B)serving as a lender of last resort to financial institutions.
• C)providing banking services to the U.S. government.
• D)holding the nominal interest rate no more than 2 percent above the real interest rate.

Understand the concept and calculation of liquidity ratios and their significance for analyzing a company's financial health.

Identify and describe the components of a company's gross margin and how sales discounts and returns affect financial statements.

Recognize the classification and management of inventory and its impact on liquidity and financial statements.

Distinguish between perpetual and periodic inventory systems, including their impact on accounting and inventory management.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.