Currently, the Federal Reserve Earns Approximately $90 Billion of Interest

question 144

Multiple Choice

Currently, the Federal Reserve earns approximately $90 billion of interest annually on its holdings of government bonds. Only a small portion of these earnings is required to cover the Fed's operating costs. The remainder of these earnings is

• A) distributed to the member banks of the Federal Reserve system.
• B) invested in corporate stocks held by the Fed.
• C) returned to the U.S. Treasury.
• D) loaned to commercial banks.

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Definitions:

Proposition

An expression that conveys a judgment or opinion.

Traditional Square

A method of analyzing categorical propositions in the field of logic, typically involving the relationships between universal and particular statements.

Propositions

Assertions or statements that present an idea or opinion for consideration or debate.

Opposition

In logic and philosophy, the relation between two propositions that have corresponding subject and predicate but differ in quality, such as one being affirmative and the other negative.