Which of the Following Statements Is Correct

question 123

Multiple Choice

Which of the following statements is correct?

• A)To control the money supply,the Fed relies primarily on the reserve requirement.
• B)The discount rate is the rate of interest banks charge to their best customers.
• C)The Fed changes the reserve requirement frequently.
• D)Because the Fed has no way to earn income,it is dependent upon Congress for appropriations.
• E)Banks can turn a borrower's IOU into money--i.e.,they can create money.

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Definitions:

Mail Fraud

A criminal act involving the use of postal or electronic mail services to carry out schemes devised to defraud or obtain money or property under false pretenses.

False Pretenses

A legal term referring to the act of deliberately misrepresenting facts to unlawfully gain money, property, or services from another.

Medicare

A federal health insurance program in the United States for people aged 65 and older, as well as for some younger individuals with disabilities.

Federal Constitutional Rights

Rights granted to citizens by the U.S. Constitution that are protected from governmental infringement.