When the Fed _______ Governments Bonds It _______ Bank Reserves

question 17

Multiple Choice

When the Fed _______ governments bonds it _______ bank reserves.

• A) sells; increases
• B) buys; increases
• C) buys; decreases
• D) issues new; increases

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Definitions:

Validity

The extent to which a test or instrument measures what it is supposed to measure, indicating the accuracy of the results.

Standardized Test

An exam administered and scored in a consistent manner to ensure comparability across different test takers.

Consistent Results

Findings or outcomes from experiments or studies that are repeatedly similar under the same or similar conditions, indicating reliability.

Normal Curve

A statistical concept representing the distribution of a set of data that forms a bell-shaped curve, indicating average scores at the center and deviations spread equally around it.