Table 29-1 Effects of an Open-Market Transaction on the Balance

question 4

Multiple Choice

Table 29-1 Effects of an open-market transaction on the balance sheets of banks and the fed (in millions of dollars) In Table 29-1, if the required reserve ratio is 10 percent, what will happen to the money supply? Use the oversimplified money multiplier in your calculations.

• A) The money supply will decrease by $100 million.
• B) The money supply will decrease by $10 million.
• C) The money supply will not change.
• D) The money supply will increase by $10 million.
• E) The money supply will increase by $100 million.

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Definitions:

Internal Consistency

A measure of the reliability of a psychological test that assesses the extent to which different test items that propose to measure the same general construct produce similar results.

Cohen's Kappa

Cohen's Kappa is a statistical measure used to assess the reliability of inter-rater agreement for qualitative (categorical) items, correcting for the chance of agreement.

Item-total Correlation

The relationship between individual item scores and the overall score across all items in a test or questionnaire.

Split-half Reliability

An evaluation of reliability involving splitting a test into two sections and comparing scores from each section to check how consistent the test is.