Which of the Following Institutions Within the Federal Reserve System

question 182

Multiple Choice

Which of the following institutions within the Federal Reserve System determines how many government securities the Fed should buy or sell on a given day?

• A) the Board of Governors
• B) Federal Advisory Committee
• C) the Federal Reserve Bank of Chicago's Board of Trade
• D) the Federal Reserve Bank of New York's Trading Desk

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Definitions:

Expected Variance

A statistical measure that represents the dispersion of possible returns of an investment, used in portfolio theory to gauge risk.

Probability Distribution

A quantitative function that assesses and represents every imaginable value and probability for a random variable within a certain limit.

Stock of the Economy

An aggregate representation of the total value of all publicly traded companies within an economy.

Nominal Rate of Interest

The stated interest rate of a bond or loan without adjusting for inflation or other factors that affect the true cost of borrowing.