In the Banking System Today, the Reserves Banks Hold Against

question 22

Multiple Choice

In the banking system today, the reserves banks hold against their deposit liabilities must take one of two forms. They are

• A) vault cash and deposits at the Fed.
• B) vault cash and checkable deposits.
• C) currency in circulation and checkable deposits.
• D) gold and vault cash.

---

Definitions:

Groups

In statistical analysis, groups refer to sets of subjects or data points categorized according to one or more variables for comparison or testing.

Critical Value

A threshold in hypothesis testing which the test statistic must exceed in order to reject the null hypothesis.

Chi-Square Statistic

Statistic that tests the difference between the distribution of observed frequencies and expected frequencies.