A Nontraditional Monetary Policy Approach to Stimulate Economic Activity

question 52

Multiple Choice

A nontraditional monetary policy approach to stimulate economic activity.

• A) Excess reserves
• B) Quantitative reserves
• C) Fractional easing
• D) Quantitative easing

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Definitions:

Equity Cost

The direct costs associated with issuing new equity, such as underwriting fees, or an investor's required rate of return for providing capital to a firm.

Transitory Components

Elements affecting financial statements or economic conditions that are expected to be temporary and not indicative of ongoing future performance.

Value-Irrelevant

Financial information or factors that do not impact an investor's or decision maker's assessment of a company's value.

Reported Earnings

The net income that a company reports to its investors and shareholders, often found on its income statement.