A VAR with Five Variables, 4 Lags and Constant Terms

question 2

Multiple Choice

A VAR with five variables, 4 lags and constant terms for each equation will have a total of

• A)21 coefficients.
• B)100 coefficients.
• C)105 coefficients.
• D)84 coefficients.

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Definitions:

Bank Liability

Refers to the legal obligations and responsibilities of a bank, including potential debts or legal liabilities arising from its operations.

Cashier's Check

A cashier's check is a check guaranteed by a bank, drawn on the bank's own funds and signed by a cashier.

Drawer

The person or entity that issues or writes a check or draft, instructing their bank to pay the stated amount to the party named on the document.

Drawee

The party, usually a bank, that is directed to pay a certain amount of money from a person's account as stated in a check or draft.