In Utilizing Unconventional Monetary Policy in 2010, the Federal Reserve

question 47

Multiple Choice

In utilizing unconventional monetary policy in 2010, the Federal Reserve purchased

• A)real estate worth more than $2 trillion.
• B)$800 billion in Treasury bills.
• C)over $1 trillion in mortgage backed securities.
• D)$600 billion in long-term Treasury bonds.

---

Definitions:

Downside Risks

Potential negative outcomes or losses that may occur as a result of an investment or decision.

401(k)s

Tax-advantaged, employer-sponsored retirement saving plans that allow employees to save a portion of their paycheck before taxes are taken out.

Defined Benefit Plan

A retirement plan where employee benefits are computed using a formula that considers factors such as salary history and duration of employment, with employer contributions funding the benefits.

Defined Contribution Plans

Retirement plans in which the employee, employer, or both contribute a fixed amount to the individual's account, with eventual benefits determined by the account's performance.