The Type of Monetary Policy Regime That the Federal Reserve

question 53

Multiple Choice

The type of monetary policy regime that the Federal Reserve has followed From the 1980s up until the time Ben Bernanke became chair of the Federal Reserve in 2006 can best be described as

• A)monetary targeting.
• B)inflation targeting.
• C)policy with an implicit nominal anchor.
• D)exchange-rate targeting.

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Definitions:

Statistical Arbitrage

A quantitative approach to trading that uses statistical models to identify price inefficiencies among securities for profit.

S&P 500 Future

A financial contract based on the future value of the S&P 500 stock market index.

Statistical Arbitrage

A quantitative approach to equity trading involving complex statistical models to identify price inefficiencies between pairs of securities.

Directional Strategy

An investment approach that involves taking long or short positions based on predictions of market or security movement direction.