Which of the Following Observations Is True

question 46

Multiple Choice

Which of the following observations is true?

• A)State governments are the shareholders of the Fed.
• B)The Fed chairman is appointed for a ten-year term.
• C)FOMC decisions largely determine short-term interest rates.
• D)Member banks proportionately share all of Federal Reserve's profits.

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Definitions:

Price

The cost at which something is being sold, reflecting the value that consumers or purchasers assign to a good or service.

Utility

An economic term referring to the total satisfaction received from consuming a good or service.

Marginal Utility

The increased gratification or utility derived from the consumption of an extra unit of a good or service.

Energy Drink

A type of beverage containing stimulant compounds, usually caffeine, that is marketed as providing mental and physical stimulation.