Which of the Following Is Not a Major Responsibility of the Fed

question 75

Multiple Choice

Which of the following is not a major responsibility of the Fed?

• A) controlling the money supply
• B) serving as the federal government's banker
• C) determining tax rates
• D) acting as a lender of last resort

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Definitions:

Acquisition

The process by which a company purchases most or all of another company's shares to gain control of that company.

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Business Combination

A transaction or event in which an acquirer obtains control of one or more businesses.

Fair Market Value

An estimate of the price at which an asset or property would change hands between a willing buyer and seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.