Which of the Following Is Not True About the Federal

question 222

Multiple Choice

Which of the following is not true about the Federal Reserve Banks?

• A) They serve as bankers' banks.
• B) They are privately owned but government controlled.
• C) Unlike other banks, they are not motivated by profits.
• D) They compete with commercial banks in their basic functions.

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Definitions:

Assets

Resources owned or controlled by a business, viewed as providing future economic benefits.

Profitability

A measure of how much profit a business generates compared to its revenue or assets, indicating financial success.

Vertical Analysis

A method of financial statement analysis where each entry for each of the three major categories of accounts (assets, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.

Percentage Analysis

A method of financial statement analysis in which all items are displayed as a percentage of a certain base figure, facilitating comparison between periods or companies.