Which of the Following Methods for Influencing the Federal Funds

question 15

Multiple Choice

Which of the following methods for influencing the federal funds rate has not been used by the Federal Reserve in the past 20 years?

• A) Changing the quantity of reserves supplied
• B) Changing the reserve requirement
• C) Changing the interest rate paid on reserves
• D) All of the above have been used in the past 20 years

---

Definitions:

Economic Substance

The underlying economic or commercial purpose of a transaction, which must exist for it to be recognized for tax or accounting purposes.

Legal Form

Refers to the legal structure or type of business entity, such as corporation, partnership, sole proprietorship, etc., which determines legal liabilities and taxation methods.

Revenue

The total amount of money received by a company for goods sold or services provided during a specific time period.

Percentage-Of-Completion

An accounting method that recognizes revenues and gross profit on long-term contracts in proportion to the work completed to date.