The FOMC Carries Out Its Policies Through Directives to the Bond-Trading

question 127

Multiple Choice

The FOMC carries out its policies through directives to the bond-trading desk at the:

• A)Federal Reserve Bank of Dallas.
• B)Chicago Fed.
• C)Federal Reserve of Philadelphia.
• D)Los Angeles Fed.
• E)Federal Reserve Bank of New York.

---

Definitions:

Variable Costs

Charges that adjust in line with changes in production volume or output quantity.

Required Return

A rephrasing of Required Rate of Return; it's the expected return that investors demand for an investment in a particular asset, based on its risk.

Cash Break-even

The point at which a business generates enough cash flow to cover its operating expenses and capital costs.

Variable Costs

Expenses that vary directly with the level of business activity.