Which of the Following Statements About the Federal Reserve System

question 2

Multiple Choice

Which of the following statements about the Federal Reserve System (the Fed) is correct?

• A) The Fed was established by George Washington and Alexander Hamilton in 1793.
• B) Congress created the Fed in 1913.
• C) The Fed was established in 1933, during the famous "Hundred Days" of the New Deal.
• D) Richard Nixon established the Fed in 1969 as an attempt to gain more White House control over monetary policy.
• E) The Fed was established by Herbert Hoover as a weak attempt at warding off the Great Depression.

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Definitions:

Holding Company

A company whose business activity is holding shares in another company.

Boards of Directors

Governing bodies elected by shareholders to make major decisions regarding a corporation's affairs, including setting strategies and overall management oversight.

Merger

The combination of two or more companies into a single legal entity, typically with the goal of achieving operational synergies or strategic advantages.

Appraisal Right

The right of a dissenting shareholder, if he or she objects to an extraordinary transaction of the corporation (such as a merger or consolidation), to have his or her shares appraised and to be paid the fair value of the shares by the corporation.