If the Trading Desk Is Instructed to Increase the Federal

question 8

Multiple Choice

If the Trading Desk is instructed to increase the federal funds rate, its traders _________ securities dealers, and those dealers' bank account balances are __________.

• A)sell Treasury securities to; reduced
• B)sell Treasury securities to; increased
• C)buy Treasury securities from; reduced
• D)buy Treasury securities from; increased

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Definitions:

Regression Model

A statistical technique used to predict the value of a dependent variable based on one or more independent variables.

Odds Ratio

A statistic that quantifies the strength of the association between two events, comparing the odds of an event occurring in one group to the odds of it occurring in another group.

Probability

A mathematical measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.

Dependent Variable

A variable in an experiment or study that is dependent on other variables, typically the outcome or effect being measured.