Which of the Below Statements Is FALSE

question 41

Multiple Choice

Which of the below statements is FALSE?

• A) The Fed has little regulatory power over the nation's depository institutions, especially commercial banks.
• B) From time to time, critics charge that the Fed guards its autonomy by accommodating either the White House or Congress (or both) far too much.
• C) Securitization permits commercial banks to change what once were illiquid consumer loans of several varieties into securities.
• D) An important feature of the Fed is that, by the terms of the law that created it, neither the legislative nor the executive branch of the federal government should exert control over it.

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Definitions:

World Trade Organization

An international organization that regulates international trade and ensures that trade flows as smoothly, predictably, and freely as possible.

Minimal Restrictions

Regulatory or policy conditions that impose the least possible limitations or constraints on actions or operations.

Member Nations

Countries that are part of an international organization or agreement and adhere to its statutes and regulations.

Amartya Sen

An Indian economist and philosopher, awarded the 1998 Nobel Memorial Prize in Economic Sciences for his contributions to welfare economics and social choice theory.