It Is the Responsibility of the Trading Desk at the Federal

question 41

Multiple Choice

It is the responsibility of the Trading Desk at the Federal Reserve Bank of New York to implement policies in the form of

• A) changes in the spread between the federal funds rate and the discount rate that are consistent with rules established by the twelve Federal Reserve bank presidents.
• B) variations in reserve requirements that are consistent with the announcements by the Chair of the Fed's Board of Governors.
• C) changes in foreign exchange rates that are consistent with policies established by the Secretary of the Treasury.
• D) buying or selling government securities that are consistent with the FOMC Directive.

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Definitions:

Direction

In the context of statistics, it refers to the nature of the relationship between variables, indicating whether it is positive or negative.

Correlations

Statistical measures that describe the extent to which two variables change together.

Exploratory Technique

Methods or approaches used in initial research efforts to understand data, identify patterns, or formulate hypotheses, without having predetermined outcomes.

Confirmatory Technique

A method or procedure used to confirm the validity of an hypothesis or finding, often applied in the context of scientific research.