Under Current Fed Practice, Changes in Policy Made by the FOMC

question 13

Multiple Choice

Under current Fed practice, changes in policy made by the FOMC

• A)are announced at the time they are made.
• B)are announced six weeks after they are made.
• C)must be approved by the Secretary of the Treasury.
• D)must be approved by a majority of the presidents of the Federal Reserve district banks.

---

Definitions:

Economic Order Quantity

A calculation used to determine the optimal order quantity that minimizes the total inventory costs, including holding and ordering costs.

Inventory Policy

The set of guidelines a company follows to determine how much inventory should be kept on hand to meet customer demand and manage supply chain efficiency.

Quantity Discounts

Pricing incentives granted to purchasers that buy in large volumes, typically reducing the cost per unit.

Pricing Schedules

Established plans listing prices for different products, services, or conditions, often varying based on volume, timing, or contract terms.