If Many Banks Fail, This Is Likely To

question 73

Multiple Choice

If many banks fail, this is likely to:

• A) cause surviving banks to lower their ratios of reserves to deposits.
• B) cause surviving banks to raise their ratios of reserves to deposits.
• C) have no effect on the ratio of reserves to deposits in surviving banks.
• D) cause surviving banks to hold less currency.

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Definitions:

Population Coefficient

A parameter that represents a characteristic or measure of an entire population.

Significance Level

A statistical term that measures the probability of rejecting the null hypothesis when it is actually true, often denoted by alpha (α).

Higher Sales

An increase in the quantity of goods or services sold, often regarded as a key indicator of business performance and growth.

Gross Revenue

The total amount of money earned by a business from its sales before any costs or expenses are subtracted.