One of the Fed's Functions Is to Be the Government's

question 110

Multiple Choice

One of the Fed's functions is to be the government's banker.This function means that the

• A) Fed holds bank reserves
• B) Fed extends loans to the government whenever it spends more than it collects in tax revenues.
• C) government's checking account is at the Fed.
• D) all of the above

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Definitions:

Variable Inputs

Inputs or resources whose usage changes according to the level of production.

Unit Costs

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output).

Average Total Cost

The total cost of production divided by the quantity produced, representing the per unit cost of goods or services.