Two Measures of Center Are Marked on the Density Curve

question 34

Multiple Choice

Two measures of center are marked on the density curve below.

• A) The median is at the solid line and the mean is at the dashed line.
• B) The median is at the dashed line and the mean is at the solid line.
• C) The mode is at the dashed line and the median is at the solid line.
• D) The mode is at the solid line and the median is at the dashed line.

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Definitions:

Discount Rate

The interest rate charged by central banks on loans they offer to commercial banks or the rate used in discounted cash flow analysis to determine the present value of future cash flows.

Money Supply

The full tally of available monetary resources in an economy at a specified time, comprising cash, coins, and checking and savings account funds.

Reserve Requirement

Central bank regulations that set the minimum amount of reserves that must be held by a commercial bank.

Bonds

Financial instruments issued by governments or corporations to raise funds, representing a loan made by the investor to the issuer.