If the Reserve Ratio Is 8 Percent, Then an Additional

question 282

Multiple Choice

If the reserve ratio is 8 percent, then an additional $1,000 of reserves can increase the money supply by as much as

• A)$6,400.
• B)$8,000.
• C)$12,500.
• D)$20,000.

---

Definitions:

Confidence Interval

A range of values derived from sample statistics that likely covers the true population parameter with a specified probability.

Population Standard Deviation

A measure of the dispersion of a population's values from the mean, representing how spread out the population data are.

Confidence Interval

A range of values, derived from the sample data, that is likely to contain the value of an unknown population parameter with a specified level of confidence.

Mean

The central value of a dataset, calculated as the sum of all values divided by the total number of values.