The Fed

question 223

Multiple Choice

The Fed

• A) is responsible for minting coins.
• B) distributes Federal Reserve notes, which are paper currency.
• C) is responsible for conducting U.S. fiscal policy.
• D) has 15 Federal Reserve banks and governing boards in New York and Chicago.

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Definitions:

Bank Overdrafts

Occurs when withdrawals from a bank account exceed the available balance, giving the account a negative balance.

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in a year or less, used by governments to raise funds.

Money Markets

Financial markets for short-term borrowing and lending, typically with maturities of less than one year.

Current Asset

An asset expected to be converted into cash, sold, or consumed within one year or the normal operating cycle of the business, whichever is longer.