Use the Following Example to Answer the Following Questions

question 59

Multiple Choice

Use the following example to answer the following questions:
Imagine that Stella deposits $25,000 in currency (which she had been storing in her closet) into her checking account at the bank.Assume that this institution has a required reserve ratio of 25 percent.
-As a result of this deposit,by how much will the bank's reserves increase?

• A) $0
• B) $6,250
• C) $25,000
• D) $31,250
• E) $100,000

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Definitions:

Validity

The degree to which a test or measurement accurately reflects or assesses the specific concept that it is intended to measure.

Reliability

The degree to which an assessment tool or measurement produces stable and consistent results over repeated applications or observations.

Probability Sample

A sampling method in which every member of the population has a known and non-zero chance of being selected.

Experimental Research

A research methodology that tests hypotheses and establishes cause-and-effect relationships through controlled testing and observation.