As the Size of the Sample Increases,what Happens to the Shape

question 56

Multiple Choice

As the size of the sample increases,what happens to the shape of the sampling distribution of sample means?

• A)It becomes positively skewed.
• B)It becomes negatively skewed.
• C)It becomes uniformly distributed.
• D)It becomes approximately normal.

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Definitions:

Borrowed Reserves

Funds that commercial banks borrow from the central bank, often used to meet reserve requirements or to manage liquidity.

Federal Reserve System

The principal banking organization in the United States tasked with handling monetary policy.

Federal Funds Market

A financial market that allows banks to borrow or lend reserves overnight to meet reserve requirements.

Excess Reserves

Assets retained by banks exceeding the compulsory minimum reserves stipulated by central bank regulations.