Suppose a Bank Has $6,000 in Checkable Deposits and the Required

question 126

Multiple Choice

Suppose a bank has $6,000 in checkable deposits and the required reserve ratio is 0.2.If the bank wishes to hold no excess reserves,its actual reserves will be:

• A)$4,000.
• B)$1,200.
• C)$3,000.
• D)less than $1,000.
• E)$4,800.

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Definitions:

Chi-square

A statistical test used to examine differences with categorical variables, assessing how likely observed frequencies are due to chance.

Variance

Variance is a statistical measure that indicates the spread or dispersion of a set of data points or distribution around the mean.

Sample Variance

A measure of variation or dispersion of a set of sample values, calculated as the average of the squared differences from the Sample Mean.

Variance

A statistical measure of dispersion, indicating how spread out the values of a dataset are.