The Policy Directive That Is Produced from the FOMC Meeting

question 31

Multiple Choice

The policy directive that is produced from the FOMC meeting:

• A)Details the exact amount of U.S.Treasury securities the System Open Market Account Manager is to purchase or sell
• B)Sets the specific discount rate for the next eight weeks
• C)Sets the specific range that the target interest rate can fall within
• D)Simply instructs the staff of the New York Fed to buy and sell securities to maintain the market federal funds rate at the target rate

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Definitions:

Price Conscious

Being aware of and giving importance to the cost of goods and services when making purchasing decisions.

Demand

The desire combined with purchasing power for specific goods or services at a given time and price.

Lunchbox

A container used to carry food, often for consumption at work or school.

Revenue

the total amount of money received by a company for goods sold or services provided during a certain period.