The Fed Is Concerned About Inflation

question 140

Multiple Choice

The Fed is concerned about inflation.Its policy will ________ U.S.short-term interest rates and,in the foreign exchange market,lead to the value of the U.S.dollar ________.

• A)lower;rising
• B)raise;rising
• C)raise;not changing
• D)lower;falling
• E)lower;not changing

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Definitions:

RRSP

Registered Retirement Savings Plan, a Canadian account for holding savings and investment assets, with certain tax benefits.

Compounded Semi-annually

The technique of twice yearly adding interest to the initial sum of money and to the interest that has previously been compounded.

End-of-quarter Payments

Payments made at the end of each quarter in a financial year, often related to dividends, loans, or leases.

Compounded Monthly

A method of calculating interest where the interest amount is added to the principal balance each month, accelerating the growth of the investment.