State Chartered Banks ________ Be Members of the Federal Reserve

question 43

Multiple Choice

State chartered banks ________ be members of the Federal Reserve System and nationally chartered banks ________ be members of the Federal Reserve System.

• A)must; may
• B)must; must
• C)may; must
• D)may; may

---

Definitions:

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing firms to adjust all inputs.

Product Differentiation

The strategy of distinguishing a product or service from others in the market to make it more attractive to a specific target market.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power.

Buyers

Individuals or entities that exchange money for goods or services.