If the Reserve Requirement Is 20 Percent and a New

question 28

Multiple Choice

If the reserve requirement is 20 percent and a new deposit of $10,000 in cash is made by a customer to their checking account, by how much are excess reserves increased?

• A)$10,000
• B)$8,000
• C)$4,000
• D)$2,000

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Definitions:

Kruskal-Wallis Test

A non-parametric statistical test for comparing more than two independent samples.

Nonparametric Alternative

Statistical methods that do not assume a specific distribution for the data, often used when the data does not meet the assumptions necessary for parametric tests.

ANOVA F-test

A statistical method employed to ascertain if notable differences exist in the averages of three or more distinct groups.

Alternative Hypothesis

In hypothesis testing, the hypothesis that proposes there is a difference or effect, as opposed to the null hypothesis.