Which of the following statements is true acout the Federal Reserve? A. The District Banks regulate and the Board of Governors supervises the banking system. B. The voting members of the Federal Open Market Committee (FOMC) are the seven Governors and the 12 District Bank presidents. C. The Federal Reserve Board has seven Governors plus one Chairman. D. Of the Federal Reserve's three tools of monetary policy, the most frequently used is open market operations. rt 2 of 3 -Capital Budgeting Decisions A firm undertakes a fiveyear project that requires an initial capital investment of $200,000. The project is then expected to provide cash flow of $50,000 per year for the first th he third year, $40,000 in the fourth year, and $20,000 in the fifth year. The project has an atter-tax end-of life salvage value in the fitth year of $5,000. The firm applies a discol rojects of this risk level