Which of the Following Statements Is Correct

question 18

Multiple Choice

Which of the following statements is correct?

• A)The Fed has difficulty covering its normal expenses, but is reluctant to ask Congress for money.
• B)The Fed is dependent on the annual appropriations it receives from Congress.
• C)The Fed's profits are substantial, even when compared to the largest U.S. corporations.
• D)At one time the Fed made substantial profits, but falling interest rates have greatly reduced them.

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Definitions:

Cost Of Goods Sold

The immediate expenses associated with manufacturing the products a company sells, such as materials and workforce costs.

Inventory

The complete inventory of products and materials that a company keeps for the aim of either selling them or using them in manufacturing.

Tangible Assets

Assets with a physical form such as machinery, buildings, and land that a company owns and uses in its operations.

Long-Term Debt

Refers to loans and financial obligations lasting over one year.