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The Fed Operates

Question 225

Multiple Choice

The Fed operates


A) on a balanced budget
B) at a loss,since Federal Reserve notes and member bank deposits earn no interest
C) at a profit,since Federal Reserve notes and bank deposits earn no interest,but government securities and loans to commercial banks do
D) at a profit,since Federal Reserve notes and member bank deposits earn interest
E) at a loss,since Federal Reserve notes and member bank deposits earn interest,but government securities and loans to commercial banks do not

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