A Small State Bank Currently Has Reserves Equal to $300,000

question 20

Multiple Choice

A small state bank currently has reserves equal to $300,000.If the state reserve requirement is 20%,but the bank feels more comfortable with maintaining a 30% reserve,what amount of deposits does the bank currently have?

• A) $1,500,000
• B) $600,000
• C) $1,000,000
• D) $300,000
• E) None of the above.

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Definitions:

Categories

Distinct groups or classes into which data or items can be classified.

Chi-square Test

A statistical test used to determine if there is a significant difference between the expected frequencies and the observed frequencies in one or more categories.

Distribution

Refers to the way in which something is shared out or spread across a range, often used in reference to statistical data.

Two Variables

Refers to studies or analyses that involve examining the relationships or interactions between two different variables.