The _____ Is a Measure of the Error in Using

question 11

Multiple Choice

The _____ is a measure of the error in using the estimated regression equation to predict the values of the dependent variable in a sample.

• A) sum of squares due to regression (SSR)
• B) error term
• C) sum of squares due to error (SSE)
• D) residual

---

Definitions:

Required Reserve Ratio

The minimum fraction of deposits banks are required by law to keep as reserves, either in their vaults or on deposit at a central bank.

Term Auction Facility

A monetary policy tool used by the Federal Reserve to provide short-term loans to banks, aiming to improve liquidity and stability in financial markets.

Bank Insolvency

A situation where a bank's liabilities exceed its assets, making it unable to meet its obligations and continue its operations.

Excess Reserves

Banks' reserves that exceed the minimum requirement set by a central bank, not lent out and often kept for emergency purposes.