The Conventional Policy Tools Available to the Fed Include Each

question 41

Multiple Choice

 The conventional policy tools available to the Fed include each of the following, except the: ?

• A) currency-to-deposit ratio.?
• B) discount rate.?
• C) target federal funds rate range.?
• D) reserve requirement.

Differentiate between one-tail and two-tail tests and their implications on p-values and error types.

Formulate null and alternative hypotheses for various testing scenarios.

Apply the normal approximation to the binomial distribution in hypothesis testing.

Understand the conditions for using z-tests in hypothesis testing and confidence interval estimation.

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Definitions:

Safety Stock

Extra inventory kept on hand to protect against stockouts caused by variations in supply and demand.

Service Level

A measure of the quality of service provided to customers, often quantified as the percentage of customer demands met on time.

Lead Time

The total time it takes to complete a process from start to finish, often measured from the initiation to the delivery of a product or service.

Optimal Order Size

The ideal quantity of inventory to order that minimizes the total costs associated with ordering, carrying, and stockouts.