Which of the Following Statements Is Correct

question 144

Multiple Choice

Which of the following statements is correct?

• A)To control the money supply,the Fed relies primarily on the reserve requirement.
• B)The discount rate is the rate of interest banks charge to their best customers.
• C)The Fed changes the reserve requirement frequently.
• D)Because the Fed has no way to earn income,it is dependent upon Congress for appropriations.
• E)Banks can turn a borrower's IOU into money.

---

Definitions:

Triploid

An organism or cell having three sets of chromosomes, which is uncommon in most species and often leads to developmental abnormalities.

Angiosperm Seed

The reproductive unit of flowering plants, consisting of an embryo, nutritive tissue, and a protective outer coat.

Endosperm

A tissue in seed plants formed by the union of a sperm with two polar nuclei during fertilization, providing nutrition to the developing embryo.

Seed Coat

The outer protective layer of a seed that shields the embryonic plant from damage and disease.