When Ben Bernanke Referred to the Exit Strategy of the Fed

question 8

Multiple Choice

When Ben Bernanke referred to the exit strategy of the Fed, he was referring to:

• A)his plans to retire as chair of the Fed
• B)when the Fed would stop implementing monetary policy
• C)the process by which the Fed would shrink its balance sheet
• D)increasing the federal funds rate back to where it was prior to the financial crisis

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Definitions:

Variable Manufacturing Overhead

Costs associated with the production process that fluctuate with the level of output, such as indirect materials and utilities used in manufacturing.

Direct Labour

Labor costs that are directly traceable to the production of goods or services.

Grinding Minutes

A term possibly used to quantify the time involved in a grinding process during manufacturing.

Monthly Demand

The total quantity of a product that consumers are willing and able to purchase within a specific month.