The Interest Rate Changes That Result from the FOMC Meetings

question 14

Multiple Choice

The interest rate changes that result from the FOMC meetings:

• A) can be altered only by Congress.
• B) can be altered by the Secretary of the Treasury during an economic crisis.
• C) cannot be changed by anyone other than the FOMC.
• D) can only be altered during a time of crisis by the U.S. President.

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Definitions:

Earnings per Share

A financial ratio indicating the proportion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Stock Dividend

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

Large Stock Dividend

A dividend payment made in the form of additional shares rather than cash, usually representing a significant increase in a company's share base.

Price-earnings Ratio

A ratio for valuing a company that measures its current share price relative to its per-share earnings.