The Simple Deposit Multiplier Is the Ratio of the Amount

question 144

Multiple Choice

The simple deposit multiplier is the ratio of the amount of

• A)new reserves created by the banks to the amount of deposits.
• B)new reserves created by the banks to the amount of loans.
• C)deposits created by the banks to the amount of new reserves.
• D)loans issued by the banks to deposits created by the banks.

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Definitions:

High School

A secondary education institution that prepares students typically aged between 14 to 18 years for higher education or the job market.

Sign Test

A non-parametric test used to evaluate the difference between a paired sample without assuming a specific data distribution.

Median Amount

The middle value in a list of numbers ordered from smallest to largest, effectively splitting the data set into two halves.

Level Of Significance

The probability of rejecting the null hypothesis in a statistical test when it is actually true, often denoted by alpha (α).