Who Has Authority to Set Interest Rates and Lending Activities

question 19

Multiple Choice

Who has authority to set interest rates and lending activities for the nation's banks?

• A) the Federal Reserve System
• B) the Secretary of the Treasury
• C) the Internal Revenue Service
• D) the Securities and Exchange Commission
• E) the Federal Deposit Insurance Corporation

---

Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts.

Merchandising Company

A business that purchases finished goods for resale, making a profit on the difference between the buying and selling prices.

Service Company

A business that provides intangible products (services) to consumers, as opposed to selling physical goods.

Inventory Shrinkage

The loss of products between purchase and sale due to theft, damage, or errors, resulting in lower inventory levels than recorded.