Which of the Following Is NOT Part of the FOMC

question 149

Multiple Choice

Which of the following is NOT part of the FOMC directive?

• A) It lays out the FOMC's general economic objectives.
• B) It establishes short-term federal funds rate objectives.
• C) It specifies target ranges for money supply growth.
• D) It specifies who the chair of the Fed is.

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Definitions:

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.

Payback

Payback is a capital budgeting metric that measures the time required for an investment to generate cash flows sufficient to recover the initial investment cost.

Mutually Exclusive

Situations, choices, or events that cannot occur or be chosen at the same time; selecting one option excludes the possibility of the other.

WACC

The Weighted Average Cost of Capital (WACC) represents the expected average return rate a company owes its security holders for financing its assets.