Which of the Following Is Not a Function of the Federal

question 172

Multiple Choice

Which of the following is not a function of the Federal Reserve System?

• A)holding deposits of member banks
• B)clearing checks
• C)making loans to member banks
• D)serving as a bank to the Federal government
• E)making loans to the public

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Definitions:

Fixed Costs

Costs that remain constant and do not change based on the volume of goods or services a business produces.

Required Sales

The amount of sales a company needs to achieve in order to cover its costs and reach a desired level of profit.

Net Income

The company's earnings following the deduction of all taxes, expenses, and costs from its total revenue.

Contribution Margin Ratio

A financial metric that measures the ability of a company to cover variable costs with its revenue.