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

3.5 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 ʺweekend effect.ʺ
C) monthly monetary data need to be adjusted for the ʺpayday effect.ʺ
D) seasonal adjustments become more precise only as more data becomes available.
Answer: D
Ques Status: Previous Edition
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
Answer: B
Ques Status: Previous Edition

3) The increase in holiday spending is not the same every year causing the Fedʹs adjustment for
________ to be revised as more data becomes available.
A) seasonal variation
B) reporting discrepancy
C) market churning
D) transactions discrepancy
Answer: A
Ques Status: Previous Edition
4) An examination of revised money supply statistics, when compared to the initial statistics,
suggests that the initial statistics
A) are pretty good.
B) do not provide a good guide to short-run movements in the money supply.
C) provide a poor guide of monetary policy because they are usually underestimates of the
revised statistics.
D) provide a good guide of monetary policy, though they are usually underestimates of the
revised statistics.
Answer: B
Ques Status: Previous Edition
5) Generally, the initial money supply data reported by the Fed
A) is not a reliable guide to the short-run behavior of the money supply.
B) is not a reliable guide to the long-run behavior of the money supply.
C) is a reliable guide to the short-run behavior of the money supply.
D) usually underestimate the revised statistics.
Answer: A
Ques Status: Revised
6) The initial money supply data reported by the Fed are not a reliable guide to short -run
movements in the money supply such as a ________, but are reasonably reliable for longer
periods such as a ________.
A) month; year
B) day; month
C) year; decade
D) decade; century
Answer: A
Ques Status: New