State Whether the Following Statement Is True or False AND Explain

question 27

True/False

State whether the following statement is true or false AND explain why: "A decrease in the discount rate will always cause a decrease in the federal reserve funds rate."

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Definitions:

Dividend Yield Ratio

A business ratio reflecting the amount a firm disburses in dividends annually compared to the price of its shares.

Dividend Policy

A company's strategy outlining how often dividends will be paid to shareholders and in what amount.

Cash Dividend

A cash dividend refers to a distribution of a company's earnings to its shareholders as cash.