Time Series Variables Fail to Be Stationary When

question 5

Multiple Choice

Time series variables fail to be stationary when

• A)the economy experiences severe fluctuations.
• B)the population regression has breaks.
• C)there is strong seasonal variation in the data.
• D)there are no trends.

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Definitions:

Savings and Loan

A type of financial institution that specializes in accepting savings deposits and making mortgage and other loans.

Depository Institutions

Depository institutions are financial organizations, such as banks and credit unions, that accept deposits from individuals and provide loans.

Reserves

Funds that banks use to satisfy the cash demands of their customers and the reserve requirements of the Fed; reserves consist of cash held by banks plus deposits at the Fed.

Acquire Funds

The process of obtaining capital or money to finance operations, investments, or other business activities.