A New Bank Has Reserves of $600,000,checkable Deposits of $500,000,and

question 91

Multiple Choice

A new bank has reserves of $600,000,checkable deposits of $500,000,and government securities of $100,000.If the desired reserve ratio is 10 percent,the amount of loans this bank can make is

• A)$50,000.
• B)$60,000.
• C)$540,000.
• D)$550,000.
• E)$600,000.

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Definitions:

F Distribution

A probability distribution used in analysis of variance (ANOVA), particularly in the context of comparing variances across different groups.

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, often reflecting the number of independent pieces of information.

Variance

A statistical measure of the spread between numbers in a dataset, indicating how much the elements differ from the mean.

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution without violating any constraints.