The Federal Reserve System Has the Power To

question 10

Multiple Choice

The Federal Reserve System has the power to:

• A)raise or lower federal income tax rates.
• B)balance the federal government budget.
• C)increase or decrease federal government spending.
• D)compete with commercial banks in making loans to business firms.
• E)buy and sell federal government securities.

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Definitions:

Quotas

Are limits set by governments on the quantity of a product that can be imported or exported within a certain timeframe, used to regulate trade and protect domestic industries.

Supreme Court

The highest federal court in the United States, with the ultimate authority in interpreting the Constitution and adjudicating legal disputes.

Environmental Disasters

are destructive events caused by human activity or natural phenomena that severely affect the environment, ecosystems, and human communities. These disasters include oil spills, nuclear meltdowns, and extreme weather events exacerbated by climatic changes.

Love Canal

A neighborhood in Niagara Falls, New York, known for the environmental disaster caused by the dumping of toxic waste.