The Fed Has Announced That Its Views Its Long Term

question 68

Multiple Choice

The Fed has announced that its views its long term target for the inflation rate as:

• A) 0%.
• B) 2%.
• C) 10%.
• D) 5%.

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Definitions:

Rate Of Yield

A financial metric that calculates the amount of profit or loss an investment generates, relative to its cost.

Preferred Stock

A type of stock that offers dividends and/or liquidation preference over common stock.

Par

The face value of a bond or stock, or the standard level for a currency.

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or stock.