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Which of the Following Explains Why the Monetary Policy Implementation

question 166

Multiple Choice

Which of the following explains why the monetary policy implementation lag is relatively short?
I. The FOMC meets several times a year and policymakers are easily able to confer in between meetings.
II. Open market operations, one of the Fed's policy instruments can be put into effect
Immediately.
III. The Chairman of the Fed works in close collaboration with the President.
IV. Most financial institutions are member banks and will not hesitate to put into effect any new monetary policy.


Definitions:

Donor Restrictions

Constraints placed by donors on how their contributions can be used by the receiving organization.

Voluntary Health

Organizations or efforts that operate independently to promote and protect the health and well-being of individuals without mandatory participation.

Welfare Entity

An organization, often nonprofit, that aims to provide social welfare services and support to various groups within the community.

Statement of Functional Expenses

A financial report that shows how a nonprofit organization has spent its money on various functions, such as programs, administration, and fundraising.

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