What Is a Key Power of the Fed

question 31

Multiple Choice

What is a key power of the Fed?

• A) The power to change tax rates.
• B) The power to lower the budget deficit.
• C) The power to lower the total national debt.
• D) The power to expand and contract the amount of credit available in the United States.
• E) both b and c

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Definitions:

Money

A medium of exchange that is widely accepted in transactions for goods and services, acting as a unit of account, a store of value, and sometimes, a standard of deferred payment.

Precious Metals

Rare, naturally occurring metallic elements of high economic value, which are often used as investment commodities, jewelry, and in industrial applications.

Paper Dollar

A term referring to United States currency notes made of paper, as opposed to coins or digital currency.

Collectibles

Items of personal or aesthetic value, often rare or unique, that are sought after and collected by enthusiasts.