As the Reserve Ratio Goes Up, Less Money Will Be

question 35

Multiple Choice

As the reserve ratio goes up, less money will be created because:

• A)people will hold less cash.
• B)people will hold more cash.
• C)banks will extend more loans.
• D)banks will extend fewer loans.

---

Definitions:

Simple Random Samples

A subset of a statistical population in which each member has an equal chance of being chosen, ensuring unbiased representation.

SPSS Output

The results generated by the Statistical Package for the Social Sciences, displaying statistical analysis, tables, charts, and tests performed on data.

Chi-square Statistic

A statistical test used to compare observed data with data we would expect to obtain according to a specific hypothesis.

Significance Level

A threshold in hypothesis testing that determines the probability of rejecting the null hypothesis when it is actually true, often denoted by alpha (α).