Variables that can influence the Fed's forecast for reserves each day include forecasting the:

Question

Quizplus · Accepted Answer

Both the level of float in the banking system and the balance of the U.S. Treasury's account can influence the Fed's forecast for reserves each day. The level of float refers to the funds in the banking system that have not yet been collected by the Fed, and this affects the overall level of reserves. Meanwhile, the balance in the U.S. Treasury's account can also affect reserves, since the Fed may need to transfer funds to or from this account to other accounts in order to meet reserve requirements. Therefore, both of these variables are relevant to the Fed's reserve forecast.

Variables That Can Influence the Fed's Forecast for Reserves Each