If $1 in Cash Is Held in Reserve for Every

question 167

Multiple Choice

If $1 in cash is held in reserve for every $20 of deposits,the reserve ratio is:

• A) 20%.
• B) 10%.
• C) 5%.
• D) 1%.

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Definitions:

Bootstrapping

Bootstrapping is a resampling technique used in statistics to estimate the distribution of a statistic by repeatedly sampling with replacement from the data set and calculating the statistic for each sample.

Sample Size

The number of observations or data points used in a statistical sample.

Bootstrap Standard Error

A method for estimating the standard error of a statistic by resampling with replacement from the original data.

Bootstrap Distribution

A statistical technique that resamples a dataset to create a distribution for estimating the sampling distribution.