Congress Created the Federal Reserve System

question 10

Multiple Choice

Congress created the Federal Reserve System

• A)to serve as a lender of last resort.
• B)to process the receipt of taxes received by the Internal Revenue Service.
• C)to regulate the value of the U.S. dollar against foreign currencies.
• D)to provide a source of mortgage loans to the residential housing market.

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Definitions:

Stock Dividend

A distribution of a corporation's earnings to its shareholders in the form of additional shares, rather than cash.

Total Equity

The residual interest in the assets of a business after deducting liabilities, representing the shareholders' ownership interest.

Retained Earnings

Retained Earnings are the portion of a business's profits not distributed to shareholders as dividends, but kept in the company to reinvest in the business or pay off debt.

Liquidating Dividend

A type of dividend paid by a company to its shareholders out of its capital base, indicating a return of some of the original investment rather than profit.