Which statement is TRUE?
A The Discount Rate is higher than the Prime Rate
B The Fed Funds Rate is higher than the Call Loan Rate
C The Fed Funds Rate is higher than the Discount Rate
D The Prime Rate is higher than the Fed Funds Rate
3. The term "dovish" monetary policy means that:
A the Federal Reserve is loosening credit by lowering interest rates
B the Federal Reserve is tightening credit by raising interest rates
C Congress is stimulating economic growth by increasing government spending
D Congress is curbing economic growth by decreasing government spending
4. Which action would NOT help a client diversify his or her portfolio?
A Buying bonds in a portfolio that have different credit ratings
B Buying stocks in a portfolio in accounts held at different broker-dealers
C Buying an index fund that invests solely in domestic securities and another index fund that invests solely in foreign securities
D Buying a target date mutual fund based on the customer’s investment objectives and investment time horizon
1 Statement d is True. I. e prime rate are always higher than fed fund rates by normally 3%.
3.Dovish meaning is A i. e federal Reserve is loosening credit by lowering interest rate . This is because it is believed that lowering interest rate will increase the health of economy.
4 Answer is C I. e buying an index fund that solely invest in domestic securities.
Diversified Portfolio means we should not keep all eggs in 1 basket I. e should invest in different shares, bond etc.
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