If Treasury Deposits at the Fed Are Predicted to ________,The

question 99

Multiple Choice

If Treasury deposits at the Fed are predicted to ________,the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves.

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

---

Definitions:

Total Rate of Return

A measure of the total gain or loss on an investment over a specified period, including both capital gains and dividends or interest.

Total Dollar Return

The overall financial gain or loss on an investment, expressed in dollars, including dividends, interest, and capital gains.

Dividend Payments

Cash payments made by a company to its shareholders as a distribution of profits.

Variance

A statistical measurement of the dispersion of a set of data points, reflecting how much each number in the set differs from the mean.