The Banking Act of 1935 Changed the Name of the _______________

question 52

Multiple Choice

The Banking Act of 1935 changed the name of the _______________ to the Board of Governors of the Federal Reserve System.

• A) Federal Open Market Committee
• B) Board of Monetary Affairs
• C) Central Bank Board
• D) Federal Reserve Board

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Definitions:

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount in exchange for immediate cash.

Recourse

In secured lending, if the asset collateralizing a loan proves not to have the value anticipated, recourse implies the borrower is still responsible for the debt. The lender is said to have recourse to the borrower.

Seasonal Working Capital

Additional working capital needed to support fluctuations in business activity due to seasonal changes in demand.

Short-Term Loans

Loans that are scheduled to be repaid in less than a year, often used for working capital or emergency financing needs.