Impact lag is the period from when O the Fed acknowledges a problem exists to wh

Question

Impact lag is the period from when O the Fed acknowledges a problem exists to when it takes steps to correct the problem the Fed recognizes a problem until the steps taken to solve the problem actually solve the problem O a problem begins until when the Fed acknowledges there is a problem ?the Fed takes steps to correct a problem and the effect of the Fed's steps is felt in the economy DQuestion 5 2 pts Bond ratings indicate O default risk O ALL of the choices O interest-rate risk liquidity risk

Explanation / Answer

4.

Correct option is 4th option > the Fed takes steps to correct a problem and the effect of Fed’s steps is felt in the economy.

Impact lag is the period from when the Fed takes steps to correct a problem and the effect of Fed’s steps is felt in the economy.

5.

Correct option is 1st option > default risk

Bond ratings indicate default risk which is related to credit quality of the bond.

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