Over the Past 40 Years,the Most Frequent Target for the Fed's

question 101

Multiple Choice

Over the past 40 years,the most frequent target for the Fed's monetary policy has been the:

• A)prime interest rate.
• B)federal funds rate.
• C)M1 money supply.
• D)M2 money supply.
• E)required reserve ratio.

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Definitions:

Financing Activity

Transactions and events where cash is obtained from or repaid to investors and creditors, excluding those relating to operating and investing activities.

Capital Stock

The total amount of a company's share equity including both common and preferred shares, representing the initial investment in the business.

Free Cash Flow

A measure that assesses a company’s ability to fund its capital expenditures and dividends from its net cash provided by operating activities.

Indirect Method

A technique used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to calculate cash flow from operating activities.