If Float Is Predicted to Increase Because of Bad Weather,the

question 20

Multiple Choice

If float is predicted to increase because of bad weather,the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves.

• A)defensive;inject
• B)defensive;drain
• C)dynamic;inject
• D)dynamic;drain

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Definitions:

Bushels

A unit of volume that is used in the United States for measuring agricultural produce such as grain, fruits, and vegetables.

Profit-maximizing

The process or strategy of adjusting production and pricing to achieve the highest possible profit in a business.

Profit

The financial gain obtained when the revenue earned from business activities exceeds the expenses, costs, and taxes involved in sustaining the business.

Demand Curve

A graph illustrating how much of a given product a household would be willing to buy at different prices.