Why Do Banks Hold Some Deposits,but Not 100% of Deposits,in

question 17

Essay

Why do banks hold some deposits,but not 100% of deposits,in reserve?

Comprehend the impact of sample size and standard deviation on the margin of error and confidence intervals.

Differentiate between one-sided and two-sided hypotheses and their impact on confidence intervals and statistical testing.

Interpret statistical significance and P-values in the context of hypothesis testing.

Recognize the effect of increasing sample size on reducing the margin of error for a given confidence level.

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Definitions:

External Environment

Factors outside an organization that can affect its performance, including economic, social, technological, and political influences.

Trade Agreements

Formal arrangements between countries to regulate tariffs, trade barriers, and the exchange of goods and services.

New Technologies

Emerging or advanced technologies that offer novel capabilities or significant improvements over pre-existing solutions, often driving innovation and change.

Needs Analysis

The process of determining and assessing gaps between current performance and desired outcomes or competencies, often used to identify training and development needs.