If You Deposit $100 into a Demand Deposit at a Bank

question 157

Multiple Choice

If you deposit $100 into a demand deposit at a bank, what does this action do to the money supply?

• A) It increases the money supply by more than $100.
• B) It increases the money supply by less than $100.
• C) It decreases the money supply by more than $100.
• D) It decreases the money supply by less than $100.

---

Definitions:

Population Parameter

A value that accurately represents a particular characteristic of an entire population.

Sampling Distribution

The probability distribution of a given statistic based on a large number of samples drawn from a specific population.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values from the mean, indicating how spread out the data points are.

Standard Deviation

A determination of the magnitude of variation or dispersion among values in a set.