The Fed Can Offset the Effects of an Increase in Float

question 70

Multiple Choice

The Fed can offset the effects of an increase in float by engaging in

• A)a repurchase agreement.
• B)a matched sale-purchase transaction.
• C)an interest rate swap.
• D)an open market purchase.

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Definitions:

Probability

A measure of the likelihood that a specific event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Avoidance Conditioning

A learning process in which an individual learns to prevent or avoid an unpleasant stimulus by performing a particular behavior.

Student Behavior

Refers to the conduct or response patterns that students exhibit in an educational environment, influenced by factors such as classroom management, learning styles, and social interactions.

Extinction

The process of withholding reinforcement for a conditioned response. Extinction has two parts: (1) if, in a given situation, somebody displays a previously reinforced response and the response is not followed by the usual reinforcing consequence, (2) then that person is less likely to do the same thing again when he or she next encounters a similar situation.