Which of the Following Is True of the Federal Reserve

question 39

Multiple Choice

Which of the following is true of the Federal Reserve System?

• A)It is one central bank located in Washington,DC.
• B)It was created just before World War II.
• C)All Federal Reserve banks are required to become state banks also.
• D)With the formation of the Fed,the power to issue bank notes was taken away from national banks and turned over to the state banks.
• E)It was notably unsuccessful in averting the Great Depression.

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Definitions:

Efficient Market

A market in which prices fully reflect available information and adjust quickly to new data.

Opportunity Costs

The cost of foregoing the next best alternative when making a decision or choice.

Post Hoc, Ergo Propter Hoc

A logical fallacy that suggests that because one event followed another, the first event caused the second.

Inductive Reasoning

the process of making generalizations based on specific observations or instances.