Which of the Following Statements Is Correct

question 123

Multiple Choice

Which of the following statements is correct?

• A)To control the money supply,the Fed relies primarily on the reserve requirement.
• B)The discount rate is the rate of interest banks charge to their best customers.
• C)The Fed changes the reserve requirement frequently.
• D)Because the Fed has no way to earn income,it is dependent upon Congress for appropriations.
• E)Banks can turn a borrower's IOU into money--i.e.,they can create money.

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Definitions:

Power Inverter

A Power Inverter is an electrical device that converts direct current (DC) into alternating current (AC), allowing the use of household appliances in situations where only DC power is available.

Tailgating

An unauthorized person following an authorized individual to enter a secure area, bypassing physical security measures.

Mantrap

A security mechanism consisting of two or more interlocking doors, which regulates access into a secure area, one person at a time.