Which of the Below Statements Is TRUE

question 8

Multiple Choice

Which of the below statements is TRUE?

• A) The goal of stabilizing interest rates is indirectly related to the goal of growth and to the Fed's responsibility for the health of the nation's financial and banking system.
• B) The Fed's goal is to stabilize and prevent changes in rates.
• C) Because exchange rates are independent of the monetary policies of the major countries, the Fed has accepted the goal of stabilizing foreign exchange rates.
• D) A chief disadvantage of unstable foreign currency exchange rates is that volatility in the prices of currencies inhibits the international trade that offers a host of benefits to all participating countries.

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Definitions:

Political Action Committee

A Political Action Committee (PAC) is an organization that collects political donations from members and donates those funds to campaign for or against candidates, legislation, or initiatives.

Charitable Contribution

A gift or donation made to a non-profit organization, which can often be used as a tax deduction by the donor.

Synagogue

A Jewish house of worship and community gathering place.

Home Equity Indebtedness

Home equity indebtedness refers to loans secured by the taxpayer's home, where the proceeds are not necessarily used to buy, build, or substantially improve the home.