The Purpose of the Commitment by the Fed to Keep

question 101

Multiple Choice

The purpose of the commitment by the Fed to keep the federal funds rate at zero for a long period of time is to

• A)lower the long term interest rates.
• B)lower the short term interest rates.
• C)increase the long term interest rates.
• D)increase the short term interest rates.

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Definitions:

Digestive System

The system of organs responsible for the breakdown and absorption of food and nutrients in the body.

Absorption

Absorption in a biological context refers to the process by which substances are taken up by the body, often through the intestinal tract.

Calcium

A chemical element essential for living organisms, primarily in cell signaling, blood clotting, and bone and teeth formation.

Vitamin D

A fat-soluble vitamin that helps the body absorb calcium and phosphorus, playing a crucial role in maintaining bone health.