The Equation Showing the Relationship Between Reserves and Other Items

question 91

Multiple Choice

The equation showing the relationship between reserves and other items on the Fed's balance sheet is called the bank reserves equation. Which of the following accurately restates that equation?

• A)DF - VC = R = GS + IR + L + F + OA - C - TD - OL
• B)DF + VC = R = GS + IR + L + F + OA - C - TD - OL
• C)DF + VC = R = GS + IR + L + F - OA - C - TD - OL
• D)DF - VC = R = GS + IR + L + F - OA - C - TD - OL

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Definitions:

Congruency

The state or quality of agreeing, being compatible or consistent.

Biased Sample

A nonrepresentative sample.

Representative Sample

A small group representing a larger group in terms of age, sex, ethnicity, socioeconomic status, orientation, for example.

Multistage Sample

A sampling method involving multiple phases of selection, often used in large-scale surveys to efficiently gather data.