In 1975 Congress Passed a Resolution That the Fed Must

question 41

Multiple Choice

In 1975 Congress passed a resolution that the Fed must publish its targets for growth in the money supply.The general effect of that resolution has been to

• A) noticeably restrict the Fed's power.
• B) curb the Fed's power over monetary policy but enhance its power over fiscal policy.
• C) give the Fed the right to set a ceiling on commercial banks' interest rates for the first time.
• D) force the Fed to rely more heavily on changes in the reserve ratio.
• E) have some impact; however, it has been difficult to measure just how much or at what cost.

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Definitions:

Unearned Subscriptions

Revenue received in advance for subscriptions that have not yet been fulfilled.

Adjusting Entries

Journal entries made in an accounting period to update the records for accruals and deferrals that have not been fully recorded during the period.

Deferral

A future revenue or expense initially recorded as a liability or asset.

Prepaid Rent

An expense that is paid in advance for the use of property or equipment, recognized over the period of usage.