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A Continuous Random Variable X Is Normally Distributed with a Mean

question 172

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A continuous random variable x is normally distributed with a mean of 1200 and a standard deviation of 150. Given that x = 1410, its corresponding z-score is 1.40.

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Definitions:

Excess Reserves

The amount of reserve funds that a bank holds beyond what is required by regulations, which can be loaned out or invested.

Actual Reserves

The sum of money a bank holds in its vault or with the central bank, ready to satisfy withdrawal requests or comply with regulatory obligations.

Required Reserves

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by monetary authorities.

Excess Reserves

The reserves that banks hold over and above the legally mandated minimum to meet withdrawal demands.

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