Which of the Following Observations Is True

question 46

Multiple Choice

Which of the following observations is true?

• A)State governments are the shareholders of the Fed.
• B)The Fed chairman is appointed for a ten-year term.
• C)FOMC decisions largely determine short-term interest rates.
• D)Member banks proportionately share all of Federal Reserve's profits.

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Definitions:

Public Radio

Radio stations that are funded by public sources, such as government grants and listener donations, rather than commercial advertising.

Free-rides

The situation where individuals consume a public good without contributing to its cost, benefiting from others' contributions.

Common Resource

A natural or man-made resource where one user's consumption reduces or diminishes the utility of that resource for others, and where it is difficult to exclude anyone from using the resource.

Rival

Refers to a competitor within the same market that offers similar products or services.