Which of the Following Correctly Describes What the Fed Used

question 39

Multiple Choice

Which of the following correctly describes what the Fed used as monetary targets in the past?

• A)The Fed used M1 and M2 as targets after 1993.
• B)The Fed focused on M1 as a target after deregulation of the financial markets.
• C)The Fed increased its reliance on interest rate targets since the mid-1990s.
• D)After 1980 and before the 1990s,the Fed focused on interest rate targets.

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Definitions:

Overestimating Knowledge

The tendency to believe one knows more about a subject or topic than one actually does.

Retention of Material

The ability to remember and recall information, skills, or knowledge over time after initial learning has taken place.

Hindsight Bias

The inclination to feel, after something has happened, that one would have foreseen or anticipated the result.

Humility

Humility is the quality of having a modest or low view of one's importance, often allowing individuals to be open, teachable, and appreciative of others.