The Monetary Base Consists of

question 85

Multiple Choice

The monetary base consists of

• A) currency in circulation and reserves.
• B) government securities held by the Fed and discount loans.
• C) government securities held by the Fed and currency in circulation.
• D) discount loans and reserves.

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Definitions:

Predictive Validities

The extent to which a score on a scale or test predicts future performance on a related task.

Construct Validity

The extent to which a test or measure accurately assesses the theoretical concept it is intended to measure.

Measurement Errors

The difference between a measured value and the true or accepted value, arising from limitations in the measurement process.

Strong Situation

A situation that elicits similar behaviors from most people, minimizing individual differences in response.