____ Is (Are) Not a Component of the Fed as It

question 55

Multiple Choice

____ is (are) not a component of the Fed as it exists today.

• A)The Federal Advisory Council
• B)The Board of Governors
• C)National banks
• D)The U.S. Department of Commerce
• E)All of the above are components of the Fed.

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Definitions:

Financial Intermediaries

Institutions that facilitate the channeling of funds between savers and borrowers, by ensuring the flow of capital.

Pension Funds

Investment pools, typically of large size, established to manage and invest the retirement funds of employees, offering them income upon retirement.

Credit Unions

Member-owned financial cooperatives that provide the same services as banks but are typically nonprofit, aiming to serve their members rather than maximize profit.

Agency Problem

A conflict of interest inherent in any relationship where one party is expected to act in the best interest of another.