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

question 135

Multiple Choice

Over the past 40 years, the most frequent target of 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) unemployment rate.

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Definitions:

Weekly Cash Flows

The movement of cash in and out of a business on a weekly basis, tracking how money is spent and received.

Opportunity Cost

The expense incurred by not choosing the second-best option while deciding.

Monthly Cash Flows

The total amount of money being transferred into and out of a business, particularly during a month.

Lockbox System

A system used by companies to expedite the collection of check payments by having them processed through a bank's PO Box.