What Was the Aim of the Federal Reserve Act of 1913

question 18

Multiple Choice

What was the aim of the Federal Reserve Act of 1913?

• A) to redistribute wealth
• B) to regulate wages
• C) to strengthen industry
• D) to abolish depressions

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Definitions:

Pre-Acquisition Profits

Earnings of a subsidiary before control was taken by the parent company; these are not included in the consolidated profit and loss of the parent company.

Dividend Paid

Refers to the portion of a company's earnings that is distributed to its shareholders as a return on their investment.

Subsidiary

A company that is completely or majority-owned by another company.

Fair Value

Fair value is the estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.