Which of the Following Is True of the Federal Reserve

question 119

Multiple Choice

Which of the following is true of the Federal Reserve System?

• A)It is one central bank located in Washington,DC.
• B)It was created just before World War II.
• C)All Federal Reserve banks are required to also become state banks.
• D)With the formation of the Fed,the power to issue bank notes was taken away from national banks and turned over to the state banks.
• E)It was notably unsuccessful in averting the Great Depression.

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Definitions:

Projected Annual Cash Inflow

An estimate of the total money expected to be received by a company over a year from its operational activities.

Net Present Value

Net present value (NPV) is a financial calculation used to assess the profitability of an investment or project, by discounting all expected future cash flows to their present value using a specific discount rate.

Payback Period

The time it takes for an investment to generate enough cash flow to recover its initial cost, used in capital budgeting to evaluate investment efficiency.

Straight-Line Depreciation

A plan for breaking down the expense of a real asset across its viable life in steady annual segments.