ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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tax revenues
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fees fro check processing
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treasury department
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interest on government securities
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Detailed explanation-1: -The Federal Reserve is not funded by congressional appropriations. Its operations are financed primarily from the interest earned on the securities it owns-securities acquired in the course of the Federal Reserve’s open market operations.
Detailed explanation-2: -The Federal Reserve System has been given a dual mandate-pursuing the economic goals of maximum employment and price stability. It does this by using a variety of policy tools to manage financial conditions that encourage progress toward its dual mandate objectives-in other words, conducting monetary policy.
Detailed explanation-3: -There are three key entities in the Federal Reserve System: the Board of Governors, the Federal Reserve Banks (Reserve Banks), and the Federal Open Market Committee (FOMC).
Detailed explanation-4: -A Federal Reserve Open Market Sale decreases the money supply. The Fed engages in open market operations very frequently and with great effect. Open market operations are the primary way that the Fed tries to change the money supply.