Revisions in the interest rate target
A) occur on a daily basis
B) have widespread impacts on the financial markets
C) require Congressional approval
D) are based solely on data gathered in previous quarters
E) are a no-lose opportunity for the Fed

Question

Quizplus · Accepted Answer

Revisions in the interest rate target have widespread impacts on the financial markets as they affect borrowing costs, savings rates, and investor behavior. They can impact the economy as a whole, and therefore, they are closely watched by market participants and policymakers. However, they do not occur on a daily basis, do not require Congressional approval, are not based solely on data gathered in previous quarters, and are not a guaranteed opportunity for the Fed as they have potential risks and unintended consequences.

Revisions in the Interest Rate Target