One of the Difficulties in Implementing Monetary Policy Is the Time

question 110

Multiple Choice

One of the difficulties in implementing monetary policy is the time it takes:

• A) to pass new monetary policy once the Fed has decided action is needed.
• B) monetary policy to have an effect in the economy once enacted.
• C) to enact monetary policy once the Fed has decided action is needed.
• D) to get approval from the Congress to implement the policy.

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Definitions:

Convert Receivables

The process of transforming accounts receivable (money owed to a company by its customers) into cash.

Before Due

Refers to actions or events occurring prior to a specified deadline or due date.

Cash Options

Financial derivatives that give the buyer the right, but not the obligation, to buy or sell a stock at a specified price before a certain date.

Note Receivable

A written promise that entitles the holder to receive payments from a debtor according to agreed terms.