If Many Banks Fail, This Is Likely To

question 94

Multiple Choice

If many banks fail, this is likely to:

• A)increase the ratio of currency to deposits.
• B)decrease the ratio of currency to deposits.
• C)have no effect on the ratio of currency to deposits.
• D)decrease the amount of currency in circulation if the Bank of Canada takes no action.

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Definitions:

Normally Distributed

A type of continuous probability distribution characterized by a symmetrical, bell-shaped curve, where the mean, median, and mode are all equal.

Standard Deviation

A measure of the dispersion or variability in a set of values, indicating how much individual values deviate from the mean.

Fish Market

A marketplace where fish and seafood are traded, often involving auctioning and retail sales, catering to consumers and businesses.

Normally Distributed

Outlines a probability distribution characterized by symmetry around the mean, illustrating that data points in close proximity to the mean occur more often than data points far away from the mean.