Check Clearing Falls Under Which of Following Fed Functions

question 19

Multiple Choice

Check clearing falls under which of following Fed functions?

• A)Supervising and regulating the financial system
• B)Serving as a fiscal agent of the government
• C)Maintaining and developing the payments system
• D)Conducting monetary policy

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Definitions:

Cournot Model

An economic model used to describe an industry structure in which firms compete on the quantity of output they will produce, which they decide on at the same time.

Cournot Equilibrium

A situation in oligopoly markets where each firm chooses the quantity to produce to maximize its profit, assuming the quantities of its rivals are fixed.

Price Elasticity

A measure of how much the demand or supply of a product changes in response to a price change.

Cournot Equilibrium

A model of market competition in which firms choose their output levels simultaneously and independently to maximize profit with the assumption of no further entry by other firms.