Which of the Following Is Correct

question 5

Multiple Choice

Which of the following is correct?

• A)Federal Reserve purchases of securities will increase the reserves available to commercial banks.
• B)Federal Reserve purchases of securities exert upward pressure on interest rates in the short run.
• C)The Federal Reserve System determines the ratio of currency held by the public to the money supply (M1).
• D)Federal Reserve purchases of securities will decrease the reserves available to commercial banks.

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Definitions:

Class Interval

A range of values within which a variable can be categorized in the distribution of data.

Distribution

The way in which something is shared or spread out over a range, often referring to the distribution of values in a set of data.

Frequency Polygon

A graphical representation of the distribution of a dataset. It shows the frequencies of classes or intervals of data as points, which are connected by line segments.

Class Interval

A range of values used in the grouping of a set of data points in a frequency distribution.