The Standard Deviation of a Standard Normal Distribution

question 63

Multiple Choice

The standard deviation of a standard normal distribution

• A) is always equal to zero.
• B) is always equal to one.
• C) can be any positive value.
• D) can be any value.

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Definitions:

Excess Reserves

The amount of reserves that a bank holds beyond the required minimum, often held in excess of reserve requirements set by central banking authorities.

Money Supply

The aggregate monetary value within an economy, including cash, coins, and all balances in checking and savings accounts, at a given moment.

Interest Rates

The cost of borrowing money or the reward for saving, typically expressed as a percentage of the principal.

Equilibrium GDP

The level of Gross Domestic Product where the total output of an economy equals the total demand.