If a Bank Faces a Reserve Requirement of 10%, Then

question 20

Multiple Choice

If a bank faces a reserve requirement of 10%, then the total potential impact of an initial deposit of $100,000 is most likely to be:

• A)$1,000,000.
• B)$100,000.
• C)$10,000.
• D)$1,000.
• E)$100.

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Definitions:

ACT

A standardized test used for college admissions in the United States, measuring skills in English, mathematics, reading, and science, with an optional writing test.

Standard Score

A score that has been transformed to fit into a standard scale, allowing comparison across different tests or assessments.

Sten Score

A standardized test score that typically ranges from 1 to 10, used to compare an individual's performance on a test to a normative population.

Standard Deviation

It measures the dispersion or spread of a data set, indicating how much the values in the set deviate from the mean on average.