Compare the Spread of the Two Histograms Below

question 122

Multiple Choice

Compare the spread of the two histograms below.Which of the following is true?

• A) Data Set A has a larger spread than Data Set B.
• B) Data Set A has a smaller spread than Data Set B.
• C) Data Set A has the same spread as Data Set B.
• D) You cannot compare the spreads of these histograms without the original data.

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Definitions:

Monetary Policy

Actions undertaken by a central bank to control the money supply and interest rates in the economy.

Deposit Expansion Multiplier

A ratio that measures the potential increase in total bank deposits that can result from an initial deposit, based on the reserve requirement ratio.

Government Securities

Financial instruments issued by the government to borrow money from investors that usually come with a promised set of future payments.

Depository Institutions

Financial institutions that accept deposits from the public, such as banks, credit unions, and savings and loan associations.