What Restricts the Fed's Ability to Write Checks and Purchase

question 96

Multiple Choice

What restricts the Fed's ability to write checks and purchase U.S. securities?

• A) Congress; the Fed must receive a budget allocation from Congress before it can write a check.
• B) The gold requirement; the Fed cannot write a check unless it has a sufficient amount of gold to back the expenditure.
• C) Reserve requirements; the Fed must maintain 20 percent of its assets in the form of cash against the deposits that it is holding for commercial banks.
• D) Nothing; the Fed can create money simply by writing a check on itself.

Differentiate between confidence intervals and prediction intervals in the context of regression analysis.

Conduct and interpret hypothesis tests for population slope and correlation coefficient in linear regression.

Calculate and interpret the Pearson correlation coefficient in the context of linear relationships.

Understand the impact of sample size, standard error, and x value on the width of confidence intervals.

---

Definitions:

Moderately Aroused

A state of being neither too relaxed nor too excited, often considered optimal for certain tasks or learning.

Motivated Behavior

Actions that are initiated or influenced by desires and needs, driving individuals towards certain goals.

Stomach Contractions

Involuntary movements of the stomach muscles that mix and propel contents through the digestive system, often associated with hunger.

Ventromedial Hypothalamus

A region of the hypothalamus associated with satiety, feeding behavior, and regulation of metabolism.