The Quantity of Money Decreases If

question 332

Multiple Choice

The quantity of money decreases if

• A)the currency drain ratio increases.
• B)the desired reserve ratio decreases.
• C)banks loan all excess reserves.
• D)the Treasury Department issues fewer government securities.
• E)the Fed buys U.S.government securities.

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Definitions:

Standard Deviation

A measure of the dispersion or variability around the mean of a set of data, often used in finance to assess investment risk.

Expected Rate

An anticipated return on investment, interest rate, or growth rate based on historical data, market analysis, or other predictive models.

Probability

This refers to the likelihood of occurrence of an uncertain event, often expressed as a number between 0 and 1.

Narrowest Bell Curve

Describes a distribution with a high peak and steep sides, indicating that the data points cluster closely around the mean, showing low variability.