The Fed Operates

question 222

Multiple Choice

The Fed operates

• A)on a balanced budget
• B)at a loss,since Federal Reserve notes and member bank deposits earn no interest
• C)at a profit,since Federal Reserve notes and bank deposits earn no interest,but government securities and loans to commercial banks do
• D)at a profit,since Federal Reserve notes and member bank deposits earn interest
• E)at a loss,since Federal Reserve notes and member bank deposits earn interest,but government securities and loans to commercial banks do not

---

Definitions:

Consumers

Individuals or groups who purchase goods or services for personal use and not for manufacturing or resale.

Promise

A declaration or assurance that one will do something or that a particular thing will happen.

Value

The importance, worth, or usefulness of something, often considered in terms of how much something is worth to someone.

Trade Dress

The visual appearance of a product or its packaging that signifies the source of the product to consumers, including features such as design, color, or shape.