If Treasury Deposits at the Fed Are Predicted to Fall,the

question 102

Multiple Choice

If Treasury deposits at the Fed are predicted to fall,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

---

Definitions:

Incentive Bias

A psychological lean or predisposition towards certain decisions or actions due to promised rewards or incentives.

Survivorship Bias

The error of focusing on the successes or survivors in a group and overlooking those that failed, which can lead to overly optimistic beliefs or conclusions.

Reporting Bias

A tendency to selectively choose or promote certain outcomes, data, or studies over others, which can lead to a distorted view of reality.

Incentive Bias

The tendency of an individual or entity to act in a way that is more favorable for their interests due to the promise of a reward or bonus.