Which of the Following Is a Characteristic of the High-Low

question 108

Multiple Choice

Which of the following is a characteristic of the high-low method?

• A)It is the most accurate method.
• B)It cannot be affected by the presence of outliers.
• C)It has the disadvantage of objectivity.
• D)It is mathematically easy to calculate.

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Definitions:

Monetary Policy

Monetary policy involves the management of a country's money supply and interest rates by its central bank to control inflation, unemployment, and economic growth.

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves that banks must hold against deposits, influencing the bank's ability to lend.

Money Supply

The total amount of monetary assets available in an economy at any specific time, including cash, bank deposits, and other liquid assets.

Deposit Expansion Multiplier

A ratio that explains the total increase in deposits within the banking system generated from an initial deposit, based on the reserve requirement ratio.