The Fed Can Offset the Effects of an Increase in Float

question 70

Multiple Choice

The Fed can offset the effects of an increase in float by engaging in

• A)a repurchase agreement.
• B)a matched sale-purchase transaction.
• C)an interest rate swap.
• D)an open market purchase.

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Definitions:

Confidence Interval

An aggregation of values, through the analysis of sample data, projected to enclose the secret value of a population trait.

Waiting Time

The time that elapses from a point of request until the commencement of a service or response.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.

Margin of Error

An expression of the amount of random sampling error in a survey's results, representing how much the results might differ from the true population value.