The Accompanying Table Gives Data for a Commercial Bank or |

question 229

Multiple Choice

$$\begin{array} { | c | c | c | c | c | } \hline & \text { Reserve Requirement (\%) } & \text { Checkable Deposits } & \text { Actual Reserves } & \text { Excess Reserves } \\\hline ( 1 ) & \underline { W } & \$ 100,000 & \$ 10,000 & \$ 0 \\\hline ( 2 ) & 8 & \underline { X } & 20,000 & 12,000 \\\hline ( 3 ) & 12 & 200,000 & \underline { Y } & 8,000 \\\hline ( 4 ) & 20 & 300,000 & 70,000 & \underline { Z } \\\hline\end{array}$$ The accompanying table gives data for a commercial bank or thrift. In row 3, the number appropriate for space Y is

• A) $24,000.
• B) $32,000.
• C) $48,000.
• D) $96,000.

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Definitions:

Reliability

The degree to which the result of a measurement, calculation, or specification can be depended on to be accurate.

Validity

The extent to which a test or instrument measures what it is supposed to measure.

Predictive Ability

The capacity to accurately forecast future events or outcomes based on current or past information.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.