The Currency Drain Ratio Is

question 183

Multiple Choice

The currency drain ratio is

• A)the ratio of required reserves to currency.
• B)the ratio of excess reserves to currency.
• C)the ratio of currency to deposits.
• D)the ratio of excess reserves to deposits.
• E)None of the above.

---

Definitions:

Sample Variances

The measure of dispersion of data points in a sample around their sample mean, serving as an estimate of the population variance.

Test Statistic

A value calculated from sample data during a hypothesis test. Used to determine whether to reject the null hypothesis.

Alpha Level

The threshold of probability set for rejecting the null hypothesis; a measure of the likelihood of a Type I error.

Significance Level

The likelihood of incorrectly dismissing the null hypothesis as false, commonly represented by alpha.