Which of the Following Statements Is Correct

Multiple Choice

Which of the following statements is correct?

A) To control the money supply,the Fed relies primarily on the reserve requirement.
B) The discount rate is the rate of interest banks charge to their best customers.
C) The Fed changes the reserve requirement frequently.
D) Because the Fed has no way to earn income,it is dependent upon Congress for appropriations.
E) Banks can turn a borrower's IOU into money--i.e.,they can create money.