The Federal Reserve System Is Owned by

question 78

Multiple Choice

The Federal Reserve System is owned by

• A) federal government agencies such as the Treasury.
• B) the Congress of the United States.
• C) the banks that are members of the Federal Reserve System.
• D) anyone who buys stock over the counter.
• E) people who have deposits in member banks.

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Definitions:

Coupon Rate

The annual interest rate paid on a bond's face value to its holders, expressed as a percentage of the face value.

Duration

Measures the sensitivity of a bond's price to changes in interest rates, calculated as a weighted average of the times until the bond's cash flows are received.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, including all interest payments and the repayment of principal.

Coupon Rate

The interest rate that a bond issuer will pay to a bondholder, typically expressed as an annual percentage of the bond's face value.