As Expansionary Monetary Policy Tools, Quantitative Easing (QE) and Traditional

question 219

Multiple Choice

As expansionary monetary policy tools, quantitative easing (QE) and traditional open-market purchase differ in terms of the following, except

• A)the intended effect on the federal funds rate.
• B)securities purchased by the Fed.
• C)the mechanics of how the Fed buys the securities.
• D)the desired goal of shifting aggregate demand.

Understand the motivations behind certain real estate investments such as land subdivision and vacation homes.

Comprehend the concept of a real estate syndicate and the benefits of professional management.

Recognize the liquidity and cash flow considerations in real estate investments.

Understand the concept of corporate social responsibility and its dimensions.

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Definitions:

Break-Even Sales

The amount of revenue required to cover both the fixed and variable costs of a business, indicating the point at which profit starts to be generated.

Margin Of Safety

The difference between actual sales and break-even sales, indicating the amount by which sales can drop before losses begin.

Percentage Of Sales

A financial ratio that compares a particular figure or total, such as profit or expense, to the total sales revenue.

Margin Of Safety

The difference between actual or projected sales and the break-even point, indicating the risk level of not covering fixed costs.