Which of the Following Is a Function of the Fed

question 28

Multiple Choice

Which of the following is a function of the Fed?

• A)It creates a budget, or a financial plan, for the national economy every year.
• B)It performs banking services for commercial banks in districts in which it operates.
• C)It calculates the expected spending for the federal government every year.
• D)It outlines expected revenue that is due from the collection of taxes and fees.

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Definitions:

Bond Premium

The excess of a bond's market price over its principal amount or nominal value.

Straight-line Method

A strategy for computing depreciation or amortization through evenly apportioning the cost of an asset across its expected useful duration.

Semiannual Interest

Interest that is calculated and paid twice a year, commonly found in bonds and loans.

Present Value

A financial concept that represents the current value of a future amount of money or stream of cash flows given a specified rate of return.