Table 29-6 -Refer to Table 29-6.Suppose That All Other Banks Are Meeting

question 161

Multiple Choice

Table 29-6

-Refer to Table 29-6.Suppose that all other banks are meeting their reserve requirements and that people hold only deposits and no currency.Assume that Peoples' Bank has a rule to hold no excess reserves and a rule to not relend loan repayments until the 10% reserve requirements is met.When it has met the reserve requirement,reserves have changed so that the money supply should have

• A)increased by over $10 million
• B)increased by less than $10 million
• C)decreased by less than $10 million
• D)decreased by more than $10 million

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Definitions:

Times A Day

A frequency measure indicating the number of times an event occurs within a single day.

Inferential Statistics

A branch of statistics that uses a random sample of data taken from a population to describe and make inferences about that population.

Descriptive Statistics

Statistical methods that summarize and describe the features of a data set, including measures of central tendency and variability.

Hypotheses

Proposed explanations made on the basis of limited evidence as a starting point for further investigation, often tested statistically.