Once the FOMC Announces the Result of Its Meeting the Attendees

question 26

Multiple Choice

Once the FOMC announces the result of its meeting the attendees:

• A) it must brief the financial news immediately after and answer questions posed to them.
• B) observe a twenty-four hour blackout period following the meeting during which they do not speak publicly about the economic outlook or current monetary policy.
• C) observe a blackout period that lasts for a week following the meeting during which they do not speak publicly about the economic outlook or current monetary policy.
• D) never discuss the policy issues addressed in the meetings.

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Definitions:

Expense Ratio

The measure of what it costs an investment company to operate a mutual fund, expressed as a percentage of the fund's assets.

Mutual Fund

An investment vehicle that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.

Net Asset Values

The value of an entity's assets minus the value of its liabilities, often used in relation to investment funds.

Money Market Funds

Investment funds that invest in short-term debt securities, such as treasury bills and commercial paper, offering investors high liquidity with a relatively low level of risk.