The Way That Fedwire Works Is That

question 44

Multiple Choice

The way that Fedwire works is that:

• A)the required reserves of banks held in the Federal Reserve System are debited and credited each day to reflect those banks' foreign exchange transactions.
• B)at the end of each day,Fedwire sends a bill or a payment to each bank that represents that bank's net foreign exchange activity for that day.
• C)Fedwire is simply an electronic messaging system that allows banks to communicate with each other concerning foreign exchange transactions.
• D)Fedwire facilitates government approval of all foreign exchange transactions conducted by U.S.entities.

---

Definitions:

Political Parties

Organizations that seek to attain and maintain political power within a government, typically by participating in electoral campaigns, educational outreach, or protest actions.

Paired-Choice Majority Votes

A voting system in which options are matched in pairs and voted upon, with the winner of each pair moving on to compete in subsequent rounds.

Marginal Benefits

The incremental value or satisfaction derived from the use of one more unit of a good or service.

Marginal Costs

represent the cost of producing one more unit of a good or service, calculated by the change in total cost that comes from producing one additional unit.