The Primary Purpose of the Federal Open Market Committee (FOMC)is

question 18

Multiple Choice

The primary purpose of the Federal Open Market Committee (FOMC) is to:

• A)set reserve requirements.
• B)extend loans to member banks of the Fed.
• C)buy and sell government securities.
• D)distribute Federal Reserve notes.
• E)enforce bank regulations.

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Definitions:

Depreciation Expense

A technique for spreading out the expense of a physical asset throughout its lifespan.

Fixed Asset

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, such as buildings, machinery, and equipment.

Accrued Expense

Expenses incurred but not yet paid or recorded at the end of an accounting period, recognizing expenses when they are incurred, not when they are paid.

Salary Owed

The amount of money that an employer is required to pay to an employee for work performed, which has not yet been paid at the statement date.