Scenario 16-2

question 223

Multiple Choice

Scenario 16-2.The Monetary Policy of Tazi is controlled by the country's central bank known as the Bank of Tazi. The local unit of currency is the taz. Aggregate banking statistics show that collectively the banks of Tazi hold 300 million tazes of required reserves, 75 million tazes of excess reserves, have issued 7,500 million tazes of deposits, and hold 225 million tazes of Tazian Treasury bonds. Tazians prefer to use only demand deposits and so all money is on deposit at the bank.
-Refer to Scenario 16-2. Assume that banks desire to continue holding the same ratio of excess reserves to deposits. What is the reserve requirement and the reserve ratio for Tazian Banks?

• A)5 percent, 8 percent
• B)4 percent, 8 percent
• C)4 percent, 5 percent
• D)None of the above is correct.

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Definitions:

Sample Means

The average values obtained from multiple subsets of a population.

Unbiased Estimator

A statistical estimator that, on average, accurately reflects the parameter it estimates, meaning its expected value is equal to the true value of the parameter.

Standard Error

A statistical measure that quantifies the amount of variability in the sampling distribution of a statistic, often used in the context of mean or proportion.

Sample Size

The number of observations or data points that form part of a sample taken from a larger population for the purpose of statistical analysis.