The Federal Open Market Committee

question 21

Multiple Choice

The Federal Open Market Committee

• A) is comprised of members of the Federal Reserve board and representatives of all Federal Reserve Banks.
• B) came into being at the time the Federal Reserve System was created.
• C) is made up of the presidents of the 12 Federal Reserve Banks.
• D) was created under a provision of the Banking Act of 1935.

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Definitions:

Construct Validity

The extent to which a test may be said to accurately and thoroughly measure a particular construct or trait.

Construct Validity

The extent to which a test or instrument measures the theoretical construct or concept it is intended to measure.

Statistical Analyses

The collection of methods used to process, interpret, and draw conclusions from collected data.

Accurate Measurement

The degree to which a measurement reflects the true value of the attribute it is intended to measure.