Which of the Following Is Correct

question 257

Multiple Choice

Which of the following is correct?

• A)A bank's deposits at the Federal Reserves counts as part of the bank's reserves. The Federal Reserve pays interest on these deposits.
• B)A bank's deposits at the Federal Reserves counts as part of the bank's reserves. The Federal Reserve does not pay interest on these deposits.
• C)A bank's deposits at the Federal Reserves does not count as part of the bank's reserves. The Federal Reserve pays interest on these deposits.
• D)A bank's deposits at the Federal Reserves does not counts as part of the bank's reserves. The Federal Reserve does not pay interest on these deposits.

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Definitions:

Bootstrapping

A statistical method that resamples a single dataset to create many simulated samples, used in assessing the precision of sample estimates.

Resamples

The practice of repeatedly drawing samples from a given dataset with the intention of estimating a population parameter.

With Replacement

Sampling with replacement is a method where each selected unit is returned to the population before the next unit is selected, allowing it to be possibly chosen more than once.

Bootstrapping Method

A resampling technique used in statistics to estimate the distribution of a statistic by sampling with replacement from the original dataset.