Which of the Following Is Correct

question 13

Multiple Choice

Which of the following is correct?

• A)A bank's deposits at the Federal Reserve counts as part of the bank's reserves.The Federal Reserve pays interest on these deposits.
• B)A bank's deposits at the Federal Reserve counts as part of the bank's reserves.The Federal Reserve does not pay interest on these deposits.
• C)A bank's deposits at the Federal Reserve does not count as part of the bank's reserves.The Federal Reserve pays interest on these deposits.
• D)A bank's deposits at the Federal Reserve does not count as part of the bank's reserves.The Federal Reserve does not pay interest on these deposits.

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Definitions:

Regulations

Rules or directives made and maintained by an authority to regulate conduct or enforce policies.

Stare Decisis

A legal principle that obligates courts to follow historical case law when making rulings on similar cases; it emphasizes legal stability.

Common Law

A body of unwritten laws based on legal precedents established by the courts.

Social Values

Represent the important beliefs or ideals shared by members of a society concerning what is good or bad, and desirable or undesirable.