Usually, the Federal Reserve Changes Its Target for the Federal

question 69

Multiple Choice

Usually, the Federal Reserve changes its target for the federal funds rate in units of

• A) 1/4 of 1 percentage point.
• B) 1 percentage point.
• C) 2 percentage points.
• D) 5 percentage points.

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Definitions:

Stock Dividends

A form of dividend paid by a company to its shareholders in the form of additional shares, rather than cash.

Market Price

The current price at which an asset or service can be bought or sold in a public market.

Stock Dividends Distributable

A portion of a company's earnings allocated to shareholders in the form of additional shares, rather than cash, typically at a fixed rate.

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends.