Increasing the Required Reserve Ratio Is

question 169

Multiple Choice

Increasing the required reserve ratio is

• A)a contractionary policy because it lowers the amount of total reserves in the banking system
• B)a contractionary policy because it lowers the amount of excess reserves in the banking system
• C)an expansionary policy because it raises the amount of total reserves in the banking system
• D)an expansionary policy because it raises the amount of excess reserves in the banking system
• E)an expansionary policy because it raises the amount of required reserves in the banking system

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Definitions:

Exponential Smoothing

A technique used in time series data to smooth out short-term fluctuations and highlight longer-term trends or cycles.

Time Series Data

Data collected at successive equally spaced points in time, often used to analyze trends, cycles, or seasonal variations.

Exponential Smoothing

A time series forecasting method for univariate data that involves using weighted averages of past observations, with the weights decaying exponentially as the observations get older.

One-Period Ahead Forecasting

A forecasting method that predicts the value of a variable for the next period based on past and current data, often used in time series analysis.