One Way to Enhance the Stability of the Banking System

question 253

Multiple Choice

One way to enhance the stability of the banking system is to

• A) require higher bank capitalization, or net worth.
• B) increase the federal funds rate.
• C) reduce the required reserve ratio.
• D) require more leveraging by banks.

---

Definitions:

Mean

The average value of a group of numbers, calculated by dividing the sum of all the numbers by the count of the numbers.

Frequency Distribution

a representation, often in the form of a table, that shows the number of observations within a particular range of values, used in statistics to summarize data sets.

Data Set

A collection of related sets of information that consists of separate elements but can be manipulated as a unit by a computer.

Data Set

A collection of data, often used for analysis, typically consisting of related sets of information.