the fed estimates initial monetary aggregate reports because depository institutions 637842

How Reliable are the Money Data?

1) The Fed revises its estimates of the monetary aggregates, sometimes by large amounts,  because

A) large depository institutions need only report their deposits infrequently.

B) weekly monetary data need to be adjusted for the “weekend effect.”

C) monthly monetary data need to be adjusted for the “payday effect.”

D) seasonal adjustments become more precise only as more data becomes available.

2) The Fed estimates initial monetary aggregate reports because ________ depository institutions report the amount of their deposits infrequently.

A) all

B) small

C) large

D) state

3) The increase in holiday spending is not the same every year causing the Fed”s adjustment for ________ to be revised as more data becomes available.

A) seasonal variation

B) reporting discrepancy

C) market churning

D) transactions discrepancy