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:

Spin-Off

The distribution of shares in a subsidiary to existing parent company shareholders.

Subsidiary

A company that is completely or partly owned and partly or entirely controlled by another company, known as the parent company.

Shareholders

Individuals or entities that own shares in a corporation, thus holding a portion of the corporation's ownership.

Poison Pill

A defensive strategy used by companies to deter hostile takeovers by making the company less attractive to the potential acquirer.