When the Federal Reserve System Was Established

question 41

Multiple Choice

When the Federal Reserve System was established,

• A)all banks were required to become members
• B)only federally chartered banks were allowed to join
• C)only federally chartered banks were required to join
• D)most banks joined even though none were required to join
• E)membership was required for all banks in some states,but not in others

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Definitions:

Old Partnership

A previously established business arrangement where two or more individuals agree to share the profits and losses of a business venture.

Incoming Partner

A new partner who is admitted to a partnership, often contributing capital or assets to the existing partnership.

Capital Balance

The amount of money that investors have contributed to a company plus retained earnings, less any withdrawals.

Fair Market Value

The price at which an asset would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.