The Policy Directive from the FOMC Is Carried Out by

question 25

Multiple Choice

The policy directive from the FOMC is carried out by

• A) the presidents of the district banks.
• B) the presidents of commercial banks that are members of the Federal Reserve System.
• C) the account manager at the Federal Reserve Bank of New York.
• D) private dealers in the bond market.

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Definitions:

Absolute Advantage

The capability of a body to generate a product or offer a service with greater efficiency than its rivals, utilizing an identical quantity of resources.

Exchange Rate

The rate at which one currency can be exchanged for another.

Japanese Yen

The official currency of Japan, used as a medium of exchange in the country.

Comparative Advantage

The ability of an individual or group to produce a good or service at a lower opportunity cost than other producers.