Which of the Following Is NOT a Function of the Federal

question 344

Multiple Choice

Which of the following is NOT a function of the Federal Reserve System?

• A) providing for check collection and clearing
• B) holding deposits of member banks
• C) supervising member banks
• D) making loans to private firms

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Definitions:

Opportunity Cost Of Capital

The potential return that is forfeited when one investment is chosen over another.

Return On Assets

A measure of a corporation's profitability, indicating how efficient it is in using its assets to produce profit.

Capital Base

The amount of capital that a company or financial institution has available for conducting its operations, typically consisting of equity and debt.

Quality Of Earnings

An assessment of how accurately a company's reported income reflects its true earning capacity, and if it's indicative of its future financial performance.