When a $100 Bill Is Printed by the Fed, the Fed

question 120

Multiple Choice

When a $100 bill is printed by the Fed, the Fed has a financial liability because the:

• A)Fed is part of the government.
• B)Fed issued the bill.
• C)Fed has the printing machine.
• D)bill will not be counted as part ofM1.

---

Definitions:

Issuing Company

A company that releases or sells financial instruments like stocks and bonds to raise capital from public or private investors.

Laboratories of Democracy

A concept that states can experiment with policies and solutions, serving as prototypes for national legislation.

American System

An economic plan that played a significant role in American policy during the early 19th century, advocating for a high tariff to support internal improvements and protect domestic manufacturing.

New Federalism

A political philosophy that advocates for the redistribution of power from the federal government to state and local governments, emphasizing decentralization.