Efforts by the Federal Reserve Bank (The Fed) to Control

question 263

Multiple Choice

Efforts by the Federal Reserve Bank (the Fed) to control the money supply and interest rates are known as ________ policy.

• A) fiscal
• B) income
• C) monetary
• D) securities

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Definitions:

Fair Value

The price that would be received for selling an asset or paying off a liability, often the market price for an equity or debt security.

Interest-bearing Note

A debt instrument that requires the issuer to pay the lender interest over the life of the note, in addition to repaying the principal amount at maturity.

Maturity Value

The total amount due to the owner of an investment at the end of its term, including principal and interest.

Notes Receivable

A claim against a debtor for an uncollected amount, typically evidenced by a formal instrument of credit.