Which of the Following Statements Best Describes the 12 Federal

question 39

Multiple Choice

Which of the following statements best describes the 12 Federal Reserve Banks?

• A) They are privately owned and privately controlled central banks whose basic goal is to provide an ample and orderly market for U.S. Treasury securities.
• B) They are privately owned and publicly controlled central banks whose basic function is to minimize the risks in commercial banking in order to make it a reasonably profitable industry.
• C) They are privately owned and publicly controlled central banks whose basic goal is to control the money supply and interest rates in promoting the general economic welfare.
• D) They are privately owned and publicly controlled central banks whose basic goal is to earn profits for their owners.

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Definitions:

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment.

Opportunity Cost

The economic impact of dismissing the next prime alternative while reaching a decision.

Scarce Resources

Limited supplies of inputs necessary for production, leading to trade-offs and choices in their allocation.

Capital

Assets or money possessed by an individual or organization, which can be used for initiating a business or investment purposes.