If a Bank Has a Required Reserve Ratio of 25

question 18

Multiple Choice

If a bank has a required reserve ratio of 25 percent and there is $10,000 in deposits,what is the amount of required reserves?

• A) $40,000
• B) $10,000
• C) $0
• D) $2,500
• E) $5,000

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Definitions:

Margin of Error

A measure of the range of uncertainty in survey results, indicating how much the survey results may differ from the true population value.

Confidence Interval

A medley of values, from statistical analysis of samples, forecasted to include the value of an unknown population criterion.

Sampling Error

The error that occurs when the sample selected does not perfectly represent the population, leading to inaccuracy in results or conclusions.

Confidence Interval

A range of values derived from sample data that is likely to contain the true population parameter with a certain level of confidence.