The Main Purpose of the Federal Reserve Act Was to

question 32

Multiple Choice

The main purpose of the Federal Reserve Act was to

• A)create a central bank that could act as a lender of last resort to commercial banks.
• B)provide a means to finance government deficit spending.
• C)abolish the National Banking System.
• D)All of the above are correct.

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Definitions:

Fixed-Rate Mortgages

A type of mortgage where the interest rate remains the same throughout the term of the loan.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.

Competitive Rate

An interest rate, price, or charge that is favorable compared to those offered by competitors.

Residences

Places where individuals live or dwell for a period of time.