Reserves in the Banking System Will Increase If the Fed

question 3

Multiple Choice

Reserves in the banking system will increase if the Fed:

• A) buys euros or sells dollars.
• B) sells euros or buys dollars.
• C) sells euro-dominated bonds and exchanges the euros for dollars.
• D) sells euro-dominated bonds and keeps the euros from the sale.

---

Definitions:

Bootstrap Standard Error

A method for estimating the standard error of a statistic by resampling with replacement from the original dataset and computing the statistic over many resamples.

Residents

Individuals who live in a specific area, city, or country, often referred to in the context of community demographics or citizenship.

Confidence Interval

A selection of values, garnered from statistical analysis of samples, presumed to contain the value of a cryptic population parameter.

Bootstrap Method

A statistical method that involves repeatedly sampling with replacement from a data set to estimate the sampling distribution and compute statistical accuracies.