When a Bank Has Excess Reserves

question 20

Multiple Choice

When a bank has excess reserves

• A) it can make loans.
• B) it can create money.
• C) it has too many loans.
• D) Both answers A and B are correct.

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Definitions:

Median

The middle value in a sorted list of numbers, effectively dividing the dataset into two halves.

Normally Distributed

Describes a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence.

Gasoline Prices

The economic measure tracking the cost at which gasoline is sold to consumers, often subject to changes based on oil market dynamics, geopolitical factors, and regulatory policies.

Exponential Distribution

A probability distribution used to model the time between events in a process where events occur continuously and independently at a constant average rate.