When Would It Be Appropriate to Completely Counterbalance a Set

question 4

Multiple Choice

When would it be appropriate to completely counterbalance a set of conditions?

• A) The order of the conditions is not expected to have an effect.
• B) There are only a few conditions,and the order of conditions is expected to affect the dependent measure.
• C) It is not known whether or not order of the conditions is important,and there are a large number of conditions.
• D) Variables are expected to interact.

---

Definitions:

Open Market Operations

The buying and selling of government securities by a central bank as a means of controlling the money supply and influencing interest rates.

National Debt

The total amount of money that a country's government has borrowed, by various means, from the private sector and other governments.

Interest Rates

The cost of borrowing money or the return for investing money, typically expressed as a percentage of the principal amount per year.

Primary Reserves

Liquid assets held by financial institutions as a primary means to meet immediate withdrawal demands or regulatory requirements.