The Fed Would Use a Reverse Repo When They

question 4

Multiple Choice

The Fed would use a reverse repo when they:

• A)Want to temporarily increase the monetary base
• B)Forecast a permanent decrease in the demand for monetary base
• C)Forecast a permanent increase in the demand for monetary base
• D)Want to temporarily decrease the monetary base

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Definitions:

Instrument Decay

As a threat to internal validity, the possibility that a change in the characteristics of the measurement instrument, including human observers, is responsible for the results.

Journal

A periodical publication that contains scholarly articles and research findings on a specific academic field or area of interest.

Exposure

refers to the extent or duration to which an individual is subjected to a particular environment, substance, or condition.

Testing Effect

A threat to internal validity in which taking a pretest changes behavior without any effect on the independent variable.