If the Overnight Rate Is Above Target, the Bank ________

question 32

Multiple Choice

If the overnight rate is above target, the Bank ________ securities to ________ reserves, which ________ the supply of overnight funds and ________ the overnight rate.

• A)buys; increase; decreases; raises
• B)sells; increase; increases; lowers
• C)buys; decrease; decreases; raises
• D)sells; decrease; decreases; raises
• E)buys; increase; increases; lowers

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Definitions:

Treisman's Theory

A theory proposed by Anne Treisman that emphasizes the importance of attention in perception, particularly in integrating features into cohesive objects.

Unattended Information

Information that is present in the environment but is not the focus of attention and thus is not processed deeply or remembered well.

Filter Theory

A psychological theory proposing mechanisms for selectively attending to certain stimuli while ignoring others, particularly in contexts of processing information.

Attentional Filter

A mechanism of the brain that prioritizes certain types of information for processing while ignoring others, crucial for focusing attention.