Selecting Surrogate Variables Works Well If One Factor Loading for a Variable

question 2

True/False

Selecting surrogate variables works well if one factor loading for a variable is clearly higher than all other factor loadings.

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Definitions:

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to fund federal government spending.

Federal Open Market Committee

The branch of the Federal Reserve System responsible for setting monetary policy, including the manipulation of interest rates and the money supply.

Federal Reserve Banks

The regional banks that make up the Federal Reserve System, the central banking system of the United States, responsible for implementing monetary policy, supervising and regulating banks, and providing financial services.

Federal Reserve Bank Presidents

Leaders of the twelve regional Federal Reserve Banks in the United States, playing key roles in monetary policy decisions.