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:

Voidable

A legal term indicating that a contract or transaction can be legally canceled or annulled by one of the parties.

Legally Binding Contract

A legally binding contract is an agreement between parties that is enforceable by law, meaning each party has legal obligations they must fulfill.

Mental Defect

A condition involving cognitive impairment or significant loss of intellectual functioning, which can impact legal responsibilities and rights.

Incapacity

Lacking the ability, power, or legal qualification to act, make decisions, or give consent.