During a Period of Recession the Federal Reserve​

question 43

Multiple Choice

During a period of recession the Federal Reserve​
1) increases the targe federal funds rate
2) buys government securities
3) sells government securities
4) lowers the target federal funds are

• A)​1 and 2
• B)​1 and 3
• C)​2 and 4
• D)​3 and 4

Understand the impact of capital structure changes on a firm's cost of equity.

Analyze the relationship between a firm's capital structure and its operational efficiency, as reflected by free cash flows and leveraged versus unleveraged beta.

Understand how stock splits affect shareholder position and stock price.

Grasp the stability and determinants of dividends.

---

Definitions:

Calvin-Benson Cycle

The Calvin-Benson cycle is a series of biochemical redox reactions that take place in the chloroplasts of photosynthetic organisms, used to fix carbon dioxide into organic compounds.

Thylakoid Membrane

A membrane-bound compartment inside chloroplasts and cyanobacteria, which contains chlorophyll and is the site of the light-dependent reactions of photosynthesis.

Stroma

The supportive tissue of an epithelial organ, tumor, gonad, etc., consisting of connective tissues and blood vessels, or the dense fluid found inside the chloroplasts of plant cells.

Thylakoid Compartment

The thylakoid compartment is a space within the chloroplasts of plant cells, surrounded by thylakoid membranes, where the light-dependent reactions of photosynthesis occur.