The Fed Is Considering Eliminating

question 118

Multiple Choice

The Fed is considering eliminating

• A)primary credit lending.
• B)secondary credit lending.
• C)seasonal credit lending.
• D)its lender of last resort function.

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Definitions:

Trading Debt Securities

The act of buying and selling debt instruments, such as bonds, in the financial markets as a means of investment or speculation.

Fair Value Adjustment

An accounting process to adjust the book value of an asset or liability to its fair value.

Unrealized Gain

The unrealized gain from an investment that hasn't been converted into cash.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, without controlling those policies.