Fed Keeps ÷Considerable Time Pledge on 'Moderate Growth

Fed Keeps ÷Considerable Time Pledge on 'Moderate Growth

Assessment

Interactive Video

Business, Social Studies

University

Hard

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The video discusses the Federal Reserve's recent press releases, focusing on the lack of major changes in forward guidance and the end of the bond buying program. It highlights economic conditions, inflation concerns, and dissenting opinions on the Fed's policy. The forecast for interest rates in 2015 and 2016 is examined, with an increase in expected rates. The Fed's exit strategy and tools, such as interest on excess reserves and reverse repo facilities, are also covered.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the Federal Reserve anticipate regarding the federal funds rate after the asset purchase program ends?

It will increase immediately.

It will decrease significantly.

It will remain unchanged for a considerable time.

It will be removed from consideration.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What new concern is highlighted in the economic outlook section?

Decreasing economic activity

High interest rates

Rising unemployment rates

Low inflation levels

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which two Fed members dissented over the forward guidance?

Janet Yellen and Richard Fisher

Charlie Clouser and Richard Fisher

Charlie Clouser and Janet Yellen

Richard Fisher and Ben Bernanke

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the median interest rate forecast for the end of 2015?

2.875%

1.375%

1.13%

2.5%

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What tool will the Fed primarily use in its exit strategy?

Open market operations

Interest on excess reserves

Quantitative easing

Discount rate adjustments