Which of the Following Statements Is Correct

question 144

Multiple Choice

Which of the following statements is correct?

• A)To control the money supply,the Fed relies primarily on the reserve requirement.
• B)The discount rate is the rate of interest banks charge to their best customers.
• C)The Fed changes the reserve requirement frequently.
• D)Because the Fed has no way to earn income,it is dependent upon Congress for appropriations.
• E)Banks can turn a borrower's IOU into money.

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Definitions:

Liabilities

Financial obligations or debts that an entity owes to other parties, which must be settled over time through the transfer of economic benefits.

Economic Events

Financial transactions or occurrences that affect a company's financial position, such as sales transactions, debt acquisitions, investments, etc.

Information System

A coordinated network of components designed to collect, process, store, and disseminate information to support decision-making, coordination, control, analysis, and visualization in an organization.

Interested Users

Individuals or entities with a vested interest in the financial and operational performance of a company, such as shareholders, creditors, and regulatory agencies.