The Fed's Principal Objective Is to

question 87

Multiple Choice

The Fed's principal objective is to

• A)make profits to pay into the U.S.Treasury.
• B)collect tax revenues.
• C)supervise the business decisions of banks.
• D)manage the money supply and interest rates.

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Definitions:

Shares Outstanding

Shares outstanding refer to all shares currently owned by shareholders, including restricted shares owned by company insiders and share blocks held by institutional investors.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and gives holders voting rights and a share in the company's profits via dividends.

Paid-In Capital

Funds that shareholders contribute to a company in exchange for equity, beyond the par value of the shares.

Par Value

The face value of a stock or bond as stated by the issuing company, which does not necessarily reflect its market value.