Examlex

Solved

If There Are No Excess Reserves in the Banking System

question 92

Multiple Choice

If there are no excess reserves in the banking system and the Fed lowers the required reserve ratio,it follows that banks will now have __________,which they can use to extend loans and create new __________.


Definitions:

Bias

A systematic error or deviation from true results or values, caused by factors that skew the data in a certain direction.

Sampling

The process of selecting a subset of individuals from a population to estimate characteristics of the whole population.

Stratified Random Sampling

A method of sampling from a population where the population is divided into distinct subgroups and samples are drawn from each subgroup.

Simple Random Sampling

A sampling method where each member of the population has an equal chance of being selected, ensuring the sample's representativeness.

Related Questions