Which of the Following Is Not a Major Function of the Federal

question 98

Multiple Choice

Which of the following is not a major function of the Federal Reserve System?

• A)lender of last resort
• B)clearing checks between banks
• C)setting income tax rates
• D)controlling the money supply

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Definitions:

Fair Value

The value received from selling an asset or the expense of transferring a liability in a regulated transaction among market players on the date of evaluation.

Sale of Receivables without Recourse

A financial transaction where a business sells its accounts receivable to a third party without the obligation to repay if the third party fails to collect the receivables.

Required Disclosure

Mandatory information that companies must provide in their financial statements to give a full and fair view of their financial performance and position.

Securitization Entity

A special purpose vehicle (SPV) structured to pool various financial assets and then issue new securities backed by those assets.