Under Required Reserves of 20%,the Maximum to Which the Money

question 135

Multiple Choice

Under required reserves of 20%,the maximum to which the money supply could be expanded by the banking system is:

• A)ten times a new primary deposit
• B)fifteen times a new primary deposit
• C)twenty times a new primary deposit
• D)fifty times a new primary deposit
• E)none of the above

---

Definitions:

Critical Value

A threshold value that separates the region where the null hypothesis is rejected from the region where it is not rejected, based on the chosen significance level.

Df

Short for Degrees of Freedom, it represents the number of independent pieces of information available to estimate another piece of information.

F-Ratio

A statistical value used to compare variances in analyses of variance (ANOVA), indicating the ratio of systematic variance to error variance.

Factor B

Factor B usually represents a variable or an element in an experiment that is manipulated to observe its effect on an outcome, distinguishable from Factor A.