All of the Following Statements About the Fed Are True

question 78

Multiple Choice

All of the following statements about the Fed are true EXCEPT:

• A) the Fed's primary directive is to keep interest rates low.
• B) the Fed's decisions are not subject to presidential review.
• C) the Fed's decisions are not subject to congressional review.
• D) unlike other presidential appointees, members of the Fed can only be removed "for cause."
• E) the Fed can create its own money.

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Definitions:

De Facto Corporation

A company that acts like a corporation and enjoys some of its benefits, despite not being duly incorporated according to statutory requirements.

Corporation By Estoppel

A defective corporation that has conducted business with a third party and therefore cannot deny its status as a corporation to escape liability.

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction, often referring to income taxed both at the corporate level and personally.

Excessive Taxation

Taxing beyond what is fair or reasonable, often perceived as placing undue burden on taxpayers.