Banks Are Required to Keep a Minimum Level of Reserves

question 91

Multiple Choice

Banks are required to keep a minimum level of reserves on hand.The intent of this regulation is

• A)monetary control rather than bank safety.
• B)bank safety in case of bank runs.
• C)maintenance of bank profits.
• D)limiting the level of bank profits.

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Definitions:

Population Proportion

The fraction or percentage of a total population that possesses a particular characteristic.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect in a given set of observations.

Point Estimate

A single value or statistic that serves as the best guess or best estimate of an unknown population parameter.

Population Proportion

The fraction of members in a statistical population that meet a specified characteristic or criteria, often estimated using sample data.