Forward Commitment by the Fed Has Which of the Following

question 147

Multiple Choice

Forward commitment by the Fed has which of the following impacts?

• A) Forward commitment encourages lending because banks do not fear that the Fed will suddenly reverse the policy.
• B) Forward commitment encourages excessive lending as banks try to take control of as many reserves as possible before the policy is exhausted.
• C) Forward commitment eliminates all flexibility in monetary policy.
• D) Forward commitment creates moral hazard in lending,as banks know that the Fed will continue to pump reserves into the system.

Understand the use and precedence of operators in the context of structures and pointers in C.

Grasp the concepts of dynamic memory allocation in C using malloc(), calloc(), realloc(), and free().

Recognize the importance of managing dynamic memory properly to prevent memory leaks and ensure program stability.

Understand the concept of stacks, queues, and their operational mechanisms in computer programming.

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Definitions:

Payback Rule

A capital budgeting technique that calculates the time required to recoup the cost of an investment, focusing on cash flows without considering the time value of money.

Future Cash Flows

Projected cash receipts and payments over a future period.

Crossover Point

The point at which two or more different strategies, options, or paths yield the same result or value.

Discount Rate

Typically refers to the interest rate that central banks charge commercial banks for loans, serving as a reference rate in financial calculations.