When the Federal Reserve Was Created in 1913, What Were

question 13

Multiple Choice

When the Federal Reserve was created in 1913, what were its two primary purposes?

• A)To regulate the financial sector of the US economy and maintain the gold standard
• B)To print money (real bills)and lend only to banks committed to investment in "real" economic activity
• C)To regulate the financial sector and be a "lender of last resort" to commercial banks
• D)To maintain the gold standard and be a "lender of last resort" to commercial banks

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Definitions:

Fixed Proportions

A production process where inputs are used in strict, unchangeable ratios.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another.

Demand Curve

A graph displaying the relationship between the price of something and the quantity demanded at those prices.

Labor Productivity

Labor productivity measures the output of goods and services per unit of labor input, indicating the efficiency and effectiveness of the workforce.