FOMC Directives to the Account Manager

question 66

Multiple Choice

FOMC directives to the account manager

• A)are usually very detailed, leaving him little room for discretion.
• B)are issued very infrequently, leaving the account manager effectively in charge of monetary policy for months at a time.
• C)are usually vaguely worded.
• D)are usually concerned with technical matters and have little to do with monetary policy.

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Definitions:

Surplus Amount

The excess of revenues over expenditures in a budget, or inventory beyond what is currently needed.

Consumer Surplus

The gap between what consumers are prepared to spend on a good or service and what they end up paying.

Price

The cost at which goods or services are offered to consumers.

Surplus Amount

The excess of supply over demand in a market, resulting in downward pressure on prices.