Which of the Followings Is NOT a Current Duty of the Board

question 11

Multiple Choice

Which of the followings is NOT a current duty of the Board of Governors of the Federal Reserve System?

• A)setting margin requirements,the fraction of the purchase price of the securities that has to be paid for with cash
• B)setting the maximum interest rates payable on certain types of time deposits under Regulation Q
• C)approving the discount rate "established" by the Federal Reserve banks
• D)voting on the conduct of open market operations

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Definitions:

Chattel Mortgage

A loan arrangement in which personal movable property is used as security for the loan, and the lender holds a mortgage over the chattel.

Trust Receipts

Documents that acknowledge the receipt of goods that are held in trust for the lender until the loan associated with the goods is paid.

Blanket Lien

A type of lien that gives the creditor the rights to seize nearly all types of assets and property of the debtor in the event of default.

Trade Credit

A type of commercial financing where a buyer is allowed to purchase goods or services and pay the supplier at a later scheduled date.