Which of the Following Is Not a Power of the Federal

question 73

Multiple Choice

Which of the following is not a power of the Federal Reserve System?

• A)Setting the prime interest rate
• B)Issuing Federal Reserve notes
• C)Buying and selling U.S.government securities
• D)Extending loans to member banks
• E)Clearing checks

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Definitions:

WACC

The Weighted Average Cost of Capital is a method used to compute a company's cost of capital, where each type of capital is assigned a weight proportional to its importance.

Performance Measure

Metrics or standards used to evaluate the effectiveness, efficiency, and productivity of an individual, organization, or process.

Corporate Tax Rate

The tax imposed on the net income of a corporation.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity and preferred equity, determining its financial stability and strategy.