Scenario 25-2 Imagine That Kristy Deposits $10,000 of Currency into Her Checking

question 256

Multiple Choice

Scenario 25-2

Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 20%.

-Refer to Scenario 25-2. As a result of Kristy's deposit, Bank A's required reserves increase by

• A) $2,000.
• B) $8,000.
• C) $10,000.
• D) $50,000.

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Definitions:

Face Validity

The degree to which a measurement device appears to accurately measure a variable.

Criterion Validity

The extent to which a measure is correlated with, or predictive of, an outcome of interest, often assessed through correlations with other known indicators.

Divergent Validity

A measure of validity that ensures an assessment does not strongly correlate with tests from unrelated constructs, thus proving its specificity.

Operational Definition

Definition of a concept that specifies the method used to measure or manipulate the concept.