If the Required Reserve Ratio Is 10 Percent and a Bank

question 52

Multiple Choice

If the required reserve ratio is 10 percent and a bank receives a deposit of $100, it can make a loan of

• A)$900.
• B)$100.
• C)$10.
• D)$90.

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Definitions:

GMAT Scores

Standardized test scores used primarily for admissions decisions into graduate business programs, assessing quantitative, verbal, analytical writing, and integrated reasoning skills.

ANOVA Table

A statistical table used in analysis of variance that summarizes the sources of variance in a data set to help determine if there are significant differences.

Critical Value

A point on a statistical distribution that represents a threshold beyond which a given effect is considered statistically significant.

Normally Distributed

Describes a type of continuous probability distribution for a real-valued random variable where observations in a dataset are symmetrically distributed around the mean.