When Computing Standard Error,if the Sample Size Increases While the Variability

question 61

Multiple Choice

When computing standard error,if the sample size increases while the variability remains the same,then the standard error:

• A)decreases
• B)increases
• C)remains the same
• D)is about average
• E)none of the above; there is no such thing as standard error

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Definitions:

Excess Reserves

Bank reserves in excess of the required minimum, which can be lent out or invested.

Total Reserves

The sum of all deposits, including cash, bank deposits, and investable assets, held by a financial institution or country.

Required Reserves

The minimum amount of reserves a bank must hold, as mandated by regulatory bodies, based on a percentage of the bank's deposit liabilities.

Money Supply

The total quantity of money available in the economy at a given time, including currency, deposits, and other liquid assets.