Open-Market Operations Are

question 130

Multiple Choice

Open-market operations are:

• A)sales or purchases of government securities,by the Fed to or from banks on the open market.
• B)regulations that sets the minimum fraction of deposits banks must hold in reserve.
• C)allows any bank to borrow reserves from the Fed at a special interest rate,called the discount rate.
• D)None of these is true.

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Definitions:

Level of Significance

The probability of rejecting the null hypothesis in a statistical test when it is in fact true; commonly set thresholds include 0.05 or 0.01.

Null Hypothesis

The null hypothesis is a statement or hypothesis that there is no significant difference or effect, typically to be tested against an alternative hypothesis.

Critical Value

The threshold in a statistical test such that if the calculated test statistic is beyond this point, the null hypothesis is rejected.

Chi-Square Tests

Statistical tests used to determine if there is a significant difference between the expected frequencies and the observed frequencies in one or more categories.