Which of the Following Changes Is Observed When the Fed

question 122

Multiple Choice

Which of the following changes is observed when the Fed increases the federal funds rate?

• A)Inflation is brought to an immediate halt.
• B)The inflation rate increases for several months,but then begins to decrease.
• C)Major banks try to offset this change by lowering the interest rates they charge on loans.
• D)Major banks try to offset this change by lowering the interest rates they pay on savings deposits.
• E)Major banks raise the prime interest rate that they charge to their best customers.

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A financial statement that projects the future financial position of a company, estimating future assets, liabilities, and equity at a specific timeframe.

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A visual tool that outlines an organization's strategy and objectives in a clear, concise manner, showing how various elements are interconnected.

Corporate Social Responsibility

A business model that helps a company be socially accountable—to itself, its stakeholders, and the public.

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The total earnings of a company after all expenses have been deducted from revenues, highlighting the financial health and profitability of the company.