Which of the Following Are Not Duties of the Board

question 34

Multiple Choice

Which of the following are not duties of the Board of Governors of the Federal Reserve System?

• A) Setting margin requirements, the fraction of the purchase price of securities that has to be paid for with cash.
• B) Setting the maximum interest rates payable on certain types of time deposits under Regulation Q.
• C) Approving the discount rate "established" by the Federal Reserve banks.
• D) Representing the United States in negotiations with foreign governments on economic matters.

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Definitions:

Law of Demand

The economic principle stating that as the price of a good increases, demand for that good will decrease, and vice versa.

Marginal Cost (MC) Curve

A graphical representation showing how the cost to produce one additional unit of output changes as production volume increases.

Pollution Abatement

Measures and efforts undertaken to reduce, control, or eliminate pollution from various sources to protect the environment.

Consumer Tastes

The preferences and inclinations of consumers which influence their buying behavior and choice of products.