Examlex

Solved

In Mid-November of 2010 the Federal Reserve Announced Its Plans

question 62

Essay

In mid-November of 2010 the Federal Reserve announced its plans to purchase $600 billion worth of new government debt. Critics argued that this would create inflation and lower the value of the dollar. Why do you suppose many of our trading partners were also disheartened by this move?


Definitions:

Functional Currency

The main currency used by a business or unit in its day-to-day operations.

Exchange Rate

The price at which one currency can be exchanged for another, often fluctuating based on market conditions.

Consolidated Balance Sheet

A financial statement that combines the assets, liabilities, and equity of a parent company and its subsidiaries into one document.

Related Questions