Which of the Following Statements Is Most Correct

question 102

Multiple Choice

Which of the following statements is most correct?

• A)The market federal funds rate equals the target federal funds rate.
• B)Since 2008, the market federal funds rate has remained solidly within the target range announced by the Fed.
• C)Since 2008, the market federal funds rate has varied wildly, sometimes moving outside the target range announced by the Fed.
• D)There doesn't appear to be any relationship at all between the target and market federal fund rates.

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Definitions:

Universal Life Insurance

Similar to whole life insurance; the cash value can be used to pay the insurance premium if the policyholder doesn’t pay it, but if the cash value is not enough to pay the insurance, the policy can lapse.

Premium Payment

The amount paid for an insurance policy, either as a lump sum or in installments.

Cash Value

The amount available in cash for an insurance policy or investment account, often accessible to the policyholder or investor.

Corporate Bonds

Debt securities issued by corporations to raise capital, with the expectation that they will pay back the principal along with interest.