The Required Reserve Ratio Is the

question 51

Multiple Choice

The required reserve ratio is the

• A)amount of excess reserves the bank holds just in case.
• B)total amount of reserves the bank holds in its vaults.
• C)total amount of reserves the bank holds at the Fed.
• D)amount of reserves banks are required by the Fed to be held as a percentage of the bank's deposits.
• E)amount of reserves banks are required by the Fed to be held as a percentage of the bank's loans.

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Definitions:

Range

The difference between the highest and lowest values in a dataset; it measures the extent of variability within the data.

Skewed

A description of the asymmetry in the probability distribution of a real-valued random variable, where the tail of the distribution is longer on either the right (positively skewed) or the left (negatively skewed) side.

Sample Mean

The average value of a set of data points collected from a sample of a population.

Median

The middle value of a data set when it is ordered from least to greatest, effectively splitting the data set into two equal parts.