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:

Scrap Value

The estimated worth of an asset's materials when the asset is deemed no longer useful and is intended to be disposed of or recycled.

Straight-line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its expected useful life.

Salvage Value

Salvage value refers to the predicted value an asset will have when it is sold after reaching the end of its usability.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life, reflecting the decrease in value over time.