A Bank Will Want to Hold More Excess Reserves (Everything

question 118

Multiple Choice

A bank will want to hold more excess reserves (everything else equal) when

• A)it expects to have deposit inflows in the near future.
• B)brokerage commissions on selling bonds increase.
• C)the cost of selling loans falls.
• D)the discount rate decreases.

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Definitions:

Nominal Data

Data classified into categories that cannot be ordered in a meaningful way. Each category is mutually exclusive.

Gender

Represents a category of either male, female, or other, used to distinguish between biological and social differences in individuals.

Nonparametric Technique

A type of statistical method that does not assume a particular distribution shape for the data, thus making it useful for data that doesn't fit normal distribution models.

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The process of inspecting, cleaning, and modeling data with the goal of discovering useful information, informing conclusions, and supporting decision-making.