A Bank's Assets Equal Its Liabilities Under

question 3

Multiple Choice

A bank's assets equal its liabilities under

• A)both 100-percent-reserve banking and fractional-reserve banking.
• B)100-percent-reserve banking but not under fractional-reserve banking.
• C)fractional-reserve banking but not under 100-percent-reserve banking.
• D)neither 100-percent-reserve banking nor fractional-reserve banking.

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Definitions:

Hypothesized Value

A specific value proposed as existing or being true within the context of a statistical hypothesis test.

Null Hypothesis

A default statement that indicates no effect, difference, or relationship between two or more variables in an experiment.

Alternative Hypothesis

The hypothesis that is tested against the null hypothesis, usually representing the notion of a difference or effect.

Type I Error

Erroneously dismissing a true null hypothesis, often called a "false positive."