A Test Is Valid If It

question 56

Multiple Choice

A test is valid if it

• A) measures what it is supposed to measure
• B) gives the same result on different occasions
• C) correlates positively with a reliable test
• D) b and c

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Definitions:

Required Reserves

Required Reserves are the portion of depositors' balances that banks must have on hand as cash, according to central bank regulations.

Actual Reserves

The physical quantity of a resource or commodity that is known to be available and extractable under current conditions.

Reserve Requirement

The minimum amount of reserves that banks are required to hold by law, set by the central bank to control money supply.

Time Deposits

Time Deposits are bank deposits that have a fixed term and usually offer a higher interest rate compared to regular savings accounts.