By Regulating and Supervising the Operation of the Financial System

question 80

Multiple Choice

By regulating and supervising the operation of the financial system, the Fed is attempting to

• A)promote a healthy economy.
• B)foster an efficient and competitive financial system.
• C)support a stable economy.
• D)All of the above are correct

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Definitions:

Credit-Granting Policies

Credit-granting policies are the guidelines a business follows in determining who qualifies for credit, how much credit is offered, and under what terms.

Return On Equity Ratio

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Management Effectiveness

The degree to which managerial actions achieve the desired outcomes and objectives through efficient resource use.

Sole Proprietorships

A type of enterprise that is owned and operated by a single individual, with no legal distinction between the owner and the business.