If Two Variables Are Correlated, It Means That They Are

question 43

True/False

If two variables are correlated, it means that they are causally related in some way.

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Definitions:

Excess Reserves

The amount of reserves a bank holds beyond the required minimum, which can be lent out to stimulate economic activity or held to meet future needs.

Create Money

The process by which central banks or monetary authorities increase the money supply.

Deposit Account

A deposit account is a bank account that allows the holder to deposit and withdraw money, often earning interest, including savings accounts, checking accounts, and other transaction accounts.

Liabilities

Financial obligations or debts that a company or individual owes to others, which must be paid back in the future.