Repurchase Agreements Are Purchased by the Fed to _________ the Aggregate

question 29

Multiple Choice

Repurchase agreements are purchased by the Fed to _________ the aggregate level of bank funds.

• A)temporarily decrease
• B)permanently increase
• C)permanently decrease
• D)temporarily increase

---

Definitions:

Reinforcement

In psychology and marketing, the process of encouraging a desired behavior or response through rewards or positive outcomes.

Purchase

The act of buying goods or services, which involves an exchange of money or its equivalent.

Stimulus Discrimination

The ability to distinguish between different stimuli, often used in the context of learning and behavior modification.

Cognitive Dissonance

The mental discomfort experienced by a person who holds two or more contradictory beliefs, values, or ideas at the same time.