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:

Fixed Overhead Budget

A financial plan that outlines the expected fixed costs that are not dependent on the level of goods or services produced by the organization.

Unexpected Increase

A sudden and unforeseen rise in metrics such as costs, sales, or price levels that was not anticipated as part of the regular business planning process.

Factory Rent

The cost associated with leasing a facility used for production or manufacturing operations.

Electricity Rate

The price per unit of electric power, which can vary depending on the supplier, region, and the structure of the pricing plan.