Most of the Fed's Income Comes From

question 311

Multiple Choice

Most of the Fed's income comes from:

• A)interest on its loans to commercial banks.
• B)payments from the U.S. government in return for the Fed serving as its fiscal agent.
• C)interest on the U.S. Treasury bills that it owns.
• D)fees that it charges commercial banks for clearing checks and electronic funds transfers.

---

Definitions:

Justification

Justification involves providing reasons, explanations, or rationalizations for one's actions or beliefs, often to align with moral, legal, or social standards.

Attitudes

Mental and emotional entities that denote an individual's degree of like or dislike for an item.

Festinger and Carlsmith

Researchers known for their study on cognitive dissonance, demonstrating how experiencing inconsistency among beliefs or behaviors leads to discomfort, which individuals are motivated to reduce.

Cognitive Dissonance Theory

A psychological theory suggesting that individuals experience discomfort when holding two or more conflicting cognitions (beliefs, attitudes) and are motivated to reduce this discomfort.