When Analyzing Nominal Data,which Measure of Central Tendency Is Appropriate

question 16

Multiple Choice

When analyzing nominal data,which measure of central tendency is appropriate?

• A) mean
• B) mode
• C) median
• D) range
• E) dispersion

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Definitions:

Reserve Requirement

A regulatory mandate on banks to hold a certain percentage of their deposits in reserve either in their vaults or at the central bank.

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors, or internal controls.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including currency and various types of bank deposits.

Open Market Purchases

Actions by a central bank to buy securities in the open market to increase the money supply and lower interest rates, aiming to stimulate economic activity.