The Federal Reserve's Purchase of AIG Stock Was

question 26

Multiple Choice

The Federal Reserve's purchase of AIG stock was

• A)an example of both the wisdom and problems associated with its political independence.
• B)clearly unconstitutional.
• C)a violation of the separation of powers.
• D)none only after it had Congressional authorization.

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Definitions:

Accounts Payable

Liabilities of a business that are owed to creditors for goods and services purchased on credit.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenues.

Financial Activities

Transactions involving the management of a company's capital, including obtaining funds, repaying debts, and distributing dividends.

Non-operating

This term refers to the revenues and expenses that are not related to the core operations of a business, such as investment income or losses.