The Federal Reserve Is Empowered to Encourage Depository Institutions to Help

question 51

Multiple Choice

The Federal Reserve is empowered to encourage depository institutions to help meet the needs of communities for housing and other purposes

• A) through the Community Reinvestment Act.
• B) through the Truth in Lending Act.
• C) by a provision of the Fair Housing Act.
• D) by strictly enforcing usury laws setting maximum interest rates.

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Definitions:

Retrospectively

Looking back at past events or situations, often to reevaluate or analyze them with current knowledge.

Prospectively

Referring to or dealing with events in the future, often in the context of financial planning or forecasting.

Extraordinary Gain

A gain that arises from events or transactions that are distinct and infrequent in nature, not expected to recur regularly.

Provision For Inventories

An accounting practice where a reserve is made for potential decreases in the value of a company’s inventory.