The Fed Has the Power to Increase or Decrease the Number

question 31

Multiple Choice

The Fed has the power to increase or decrease the number of dollars in the economy through the decisions of

• A)the Board of Governors.
• B)the FOMC.
• C)the regional Federal Reserve Bank presidents.
• D)the U.S.Treasury.

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Definitions:

Dividend Income

Earnings received from owning shares of a company that pays dividends.

Shares

Shares represent portions of equity in a company or an investment, entitling holders to a proportional share of any distributed profits, known as dividends, when they are announced.

Capital Gain

The profit from the sale of a capital asset, such as stocks or real estate, where the sale price exceeds the purchase price.

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.