Which of the Following Statements Is Not Correct

question 108

Multiple Choice

Which of the following statements is not correct?

• A)The current target of the FOMC is the federal funds rate
• B)If the Fed were to target the quantity of reserves, a decrease in reserve demand would result in a lower federal funds rate
• C)If the Fed were to target the quantity of reserves, an increase in reserve demand would raise the federal funds rate
• D)The Fed can target both the quantity of reserves and the federal funds rate simultaneously

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Definitions:

Merchandise On Hand

The inventory of goods that a company currently has available for sale.

Operating Expenses

The costs associated with running a company’s day-to-day operations, excluding the cost of goods sold, such as salaries, rent, and utilities.

Net Income

The amount of profit left after all expenses, taxes, and costs have been subtracted from total revenue.

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within one year or the business's operating cycle, whichever is longer.