Which of the Following Statements Is False

question 19

Multiple Choice

Which of the following statements is false?

• A)Under the Primary Dealer Credit Facility (PDCF), primary dealers can borrow from the Fed similar to the way in which banks can borrow from the Fed at the discount window.
• B)The creation of the Primary Dealer Credit Facility (PDCF) marks the first time nonbanks can borrow from the Fed.
• C)The Primary Dealer Credit Facility (PDCF) allows primary dealers to borrow overnight funds from the Fed without collateral.
• D)The Primary Dealer Credit Facility (PDCF) is designed to increase liquidity and to provide support for the financial system.

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Definitions:

Sellers

Entities or individuals that provide goods or services in exchange for payment, crucial to the operation of any market.

Tax

A compulsory financial charge imposed by a government on individuals, corporations, or goods to finance government activities and public expenditure.

Cigarette Consumption

The amount of cigarettes smoked by individuals or populations within a specified period.

Federal Excise Tax

Federal excise tax is a tax imposed by the federal government on the sale of certain goods and services, such as fuel, tobacco, and alcohol, usually levied on the manufacturer or distributor.