Examlex
i. The complement rule states that the probability of an event not occurring is equal to one minus the probability of its occurrence. ii. If there are two independent events A and B, the probability that A and x B will occur is found by multiplying the two probabilities. Thus for two events A and B, the special rule of multiplication shown symbolically is: P(A and B) = P(A) P(B) .
iii. The general rule of multiplication is used to find the joint probability that two events will occur. Symbolically, the joint probability P(A and B) is found by: P(A and B) = P(A) P(B/A) .
Creditworthy Borrowers
Individuals or entities deemed capable of repaying a loan based on their financial history and current financial status.
Dodd-Frank Wall Street Reform and Consumer Protection Act
A comprehensive piece of financial reform legislation passed in 2010 in response to the financial crisis, aimed at reducing risk in the U.S. financial system.
Reserve Requirement
The Reserve Requirement is a central bank regulation that sets the minimum amount of reserves each bank must hold to customer deposits and notes.
Financial Institutions
Organizations that provide financial services, such as banks, insurance companies, pension funds, investment companies, and credit unions, facilitating the flow of money in the economy.
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