If the Fed Purchases $1 Million in Securities from the Nonbank

question 48

Multiple Choice

If the Fed purchases $1 million in securities from the nonbank public, the monetary base will rise by $1 million

• A)if the public holds the proceeds as currency.
• B)if the public deposits the proceeds as checkable deposits.
• C)if the public deposits the proceeds with the Treasury in a monetary base account.
• D)whether the public holds the proceeds as currency or deposits them as checkable deposits.

---

Definitions:

P-Value

In hypothesis testing, the probability of observing the test results, or more extreme results, if the null hypothesis is true, used to determine statistical significance.

Null Hypothesis

A statistical hypothesis that suggests there is no significant difference between specified populations, any observed difference being due to sampling or experimental error.

P-Value

In statistical hypothesis testing, the probability of obtaining test results at least as extreme as the ones observed during the study, assuming that the null hypothesis is true.

Null Hypothesis

A default position that there is no difference or effect, in statistics, until evidence suggests otherwise.