Table 11-4. -Refer to Table 11-4. If the Bank Faces a Reserve

question 107

Multiple Choice

Table 11-4.

-Refer to Table 11-4. If the bank faces a reserve requirement of 10 percent, then the bank

• A) is in a position to make a new loan of $10,000.
• B) has fewer reserves than are required.
• C) has excess reserves of $12,500.
• D) None of the above is correct.

---

Definitions:

Sampling Error

The difference between a sample statistic and the corresponding population parameter due to the fact that the sample is not a perfect representation of the population.

Sample Size

The number of observations or data points collected in a study.

Population Standard Deviation

The standard deviation of a population, representing the total variance within the entire population, not just a sample.

Non-Integer Value

A value that cannot be exactly represented as an integer, often including fractions or decimals.