Suppose Bank ABC Has a Target Reserve Ratio of 10

question 3

Multiple Choice

Suppose Bank ABC has a target reserve ratio of 10 percent. If Bank ABC receives a new deposit of $100 000 it will immediately find itself with

• A)excess cash reserves of $90 000.
• B)excess cash reserves of $10 000.
• C)excess cash reserves of $100 000.
• D)no excess cash reserves.
• E)excess cash reserves equal to 10 percent of its deposits.

Understand the impact of lean principles on reducing waste and its importance to the triple bottom line.

Understand the components of a simple regression model and the meaning of its parameters.

Grasp the concept of confidence and prediction intervals and their significance in regression analysis.

Identify and explain the characteristics of simple versus multiple regression models.