Suppose That a Country Has $50 Billion in Bank Reserves

question 87

Multiple Choice

Suppose that a country has $50 billion in bank reserves, $100 billion in currency held by the public, and $500 billion in bank deposits. The currency drain ratio is

• A)18%.
• B)50%.
• C)30%.
• D)10%.
• E)20%.

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Definitions:

Logistic Regression

A statistical model that estimates the probability of a binary outcome based on one or more predictor variables, using a logistic function.

Indicator Variable

A variable used in statistical modeling and analysis that takes on a value of 0 or 1 to indicate the absence or presence of a certain condition or effect.

Natural Logarithm

The logarithm to the base e (where e is approximately equal to 2.718281828), often used in mathematics and engineering.

Logistic Regression

A statistical method used for predicting a binary outcome from one or more predictor variables, modeling the probability of occurrence of an event by fitting data to a logistic curve.