Most of the Fed's Portfolio of Securities Consists of

question 34

Multiple Choice

Most of the Fed's portfolio of securities consists of

• A)U.S. Treasury securities.
• B)securities issued by foreign governments.
• C)securities issued by state and local governments in the United States.
• D)corporate bonds.

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Definitions:

Intrinsic Value

The actual value of a company or an asset based on underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.

P/E Multiple

Price-to-Earnings ratio, a valuation metric calculated by dividing the current market price of a stock by its earnings per share, indicating how much investors are willing to pay per dollar of earnings.

EPS

Earnings Per Share; a company's profit divided by its number of common outstanding shares, indicating the company’s profitability.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company based on fundamentals and independent of market price.