The Accompanying Table Gives Data for a Commercial Bank or
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question 131

Multiple Choice

$$\begin{array} { | c | c | c | } \hline \text { (1) } & \text { (2) } & \text { (3) } \\\hline \text { Legal Reserve Ratio (\%) } & \text { Checkable Deposits } & \text { Actual Reserves } \\\hline 10 & \$ 40,000 & \$ 10,000 \\\hline 20 & 40,000 & 10,000 \\\hline 25 & 40,000 & 10,000 \\\hline 30 & 40,000 & 10,000 \\\hline\end{array}$$ The accompanying table gives data for a commercial bank or thrift. When the legal reserve ratio is 30 percent, the monetary multiplier is

• A) 5.
• B) 4.
• C) 3.33.
• D) 2.5.

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Definitions:

Standard Error

A measure of the variability of a statistic from sample to sample, often used to quantify the accuracy of a sample mean.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, representing how spread out the values are from the mean.

Sample Means

The average values calculated from samples drawn from a population; used in inferential statistics as estimates of the population mean.

Population Mean

The average value of a characteristic in the entire population being studied.