The Center of a Normal Curve

question 104

Multiple Choice

The center of a normal curve

• A) is always equal to zero.
• B) is the mean of the distribution.
• C) cannot be negative.
• D) is the standard deviation.

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Definitions:

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash and bank deposits.

Total Reserves

The sum of a bank's deposits held at the central bank and the cash physically held in the bank's vault.

Required Reserves

The minimum amount of reserves that a bank must hold as mandated by the central bank or regulatory authority, usually a percentage of the bank's deposit liabilities.

Excess Reserves

Funds held by banks over and above the legally mandated reserve requirement, which can be lent out to generate additional income or held as a safeguard against potential withdrawals.