Some Economists Object to Having the Fed Concentrate Solely on Price

question 10

Multiple Choice

Some economists object to having the Fed concentrate solely on price stability because it would

• A) free the Fed from political pressure.
• B) lessen its credibility.
• C) make stabilizing the economy more difficult.
• D) privatize the Federal Reserve.

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Definitions:

Cumulative Translation Gain

The total gain or loss resulting from the translation of foreign currencies into the functional currency over a period of time.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as a single entity.

Consolidated SCI

Refers to the consolidated statement of comprehensive income which combines all financial activities of a parent company and its subsidiaries.

Calculate Exchange Gain/Loss

The process of determining the profit or loss from foreign exchange transactions, based on changes in exchange rates.