Questions from Financial Markets


Q: What are the main goals of the Federal Open Market Committee?

What are the main goals of the Federal Open Market Committee? How does it attempt to achieve these goals?

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Q: Explain how the Fed increases the money supply through open market operations

Explain how the Fed increases the money supply through open market operations.

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Q: What is the policy directive, and who carries it out?

What is the policy directive, and who carries it out?

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Q: How can the compensation of a firm’s board of directors be structured

How can the compensation of a firm’s board of directors be structured so that the board will not be tempted to allow accounting or other managerial decisions that could cause a superficially high pric...

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Q: Describe how mortgage-backed securities are used.

Describe how mortgage-backed securities are used.

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Q: What is the Beige book and why is it important to the

What is the Beige book and why is it important to the FOMC?

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Q: Describe the purpose of the Fed’s lending facility.

Describe the purpose of the Fed’s lending facility.

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Q: Discuss the relationship between the yield and the liquidity of securities.

Discuss the relationship between the yield and the liquidity of securities.

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Q: Describe the characteristics that a measure of money should have if it

Describe the characteristics that a measure of money should have if it is to be manipulated by the Fed.

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Q: What is the purpose of the economic presentations made during a POMC

What is the purpose of the economic presentations made during a POMC meeting?

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