Which of the Following Would Be a Consequence of a Bank

question 1

Multiple Choice

Which of the following would be a consequence of a bank choosing not lend its excess reserves:

• A) A decrease in the bank's required reserves
• B) An increase in the bank's total reserves
• C) An increase in the bank's reserve-deposit ratio
• D) Increased risk-taking by the bank.

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Definitions:

Standard Deviation

An indicator of how much data points deviate from the central value, signifying the spread of the dataset.

Process Distribution

The statistical distribution that characterizes the outputs or results of a process, helping to understand its behavior and variation.

Assignable Variation

Variation in a process that is caused by specific, identifiable factors, as opposed to random or inherent variability.

Standard Errors

Standard errors measure the statistical accuracy of an estimate, indicating the variability of sampling distributions of a statistic.