Which of the Following Is Not an Activity of the Fed

question 59

Multiple Choice

Which of the following is not an activity of the Fed?

• A)Making loans to the public
• B)Clearing banks' checks
• C)Lending funds to the Federal government
• D)Purchasing U.S.government securities
• E)Holding deposits of the U.S.Treasury

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Definitions:

Risk-free Return

The theoretical return on an investment with zero risk, often represented by the yield on government bonds.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values in a data set differ from the mean.

Defined Contribution Plan

A retirement plan where the employer, employee, or both contribute to an individual's account, and the retirement benefits depend on the account's investment performance.

Risk-free Return

The theoretical return on an investment with zero risk of financial loss, often represented by the yield on government securities.