I a Z-Score Is the Distance Between a Selected Value $\mu$

question 30

Multiple Choice

i. A z-score is the distance between a selected value (X) and the population mean ( $\mu$ ) divided by the population standard deviation ( $\sigma$ ) . ii. The standard normal distribution is a special normal distribution with a mean of 0 and a standard deviation of 1.
iii. A computed z for X values to the right of the mean is negative.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) is a correct statement but not (ii) or (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (i) and (ii) are correct statements but not (iii).
• E) (i), (ii), and (iii) are all false statements.

---

Definitions:

Excess Reserves

The amount of reserve funds that a bank holds beyond what is required by regulations, which can be loaned out or invested.

Actual Reserves

The sum of money a bank holds in its vault or with the central bank, ready to satisfy withdrawal requests or comply with regulatory obligations.

Required Reserves

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by monetary authorities.

Excess Reserves

The reserves that banks hold over and above the legally mandated minimum to meet withdrawal demands.