<span>Sampling an entire group can be considered a census. A census will include data from the population as a whole rather than extrapolating data from a portion of the population.</span>
When the federal reserve conducts open-market operations to increase the money supply, it buys or sells government bonds. The money supply increases when buys bonds and decreases when sells bonds.
An open market operation is an example of monetary policy. Monetary policy are the policies undertaken by a country's central bank in order to affect the level of aggregate demand in the economy.
An open market operation is the sale or purchase of government bonds. When the Fed sells bonds, its is known as an expansionary monetary policy because it increases the supply of money in the economy. On the other hand, when the Fed buys bonds, it is known as a contractionary monetary policy because it decreases the supply of money in the economy.
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Answer:
5%
Explanation:
Deposit= $600 million
Required reserve= $30 million
Required reserve ratio= required Reserve/deposit
= 30 million/600 million
= 0.05×100
= 5%
Hence the required reserve ratio is 5%
Answer:
(A) Successive price changes are independent of each other
Explanation:
Random walk theory claims that past information and trends cannot be used to predict future price movement of the stocks since as per the theory, stock price movements are unpredictable and walk(move) randomly.
The theory further suggests that stock prices have same distribution and are independent of one another. It means there is no correlation between price movements of two different stocks.
Thus, Stock prices follow a random walk implies that successive price changes are independent of each other.
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