Table 9-6: Deposit Expansion Stages

question 178

Multiple Choice

Table 9-6: Deposit Expansion Stages
In Table 9-6, assume that banks loan out 100% of their excess banking reserves, there are no cash withdrawals, and all loan proceeds are spent. Figures have been rounded up to the nearest whole number.
-Refer to Table 9-6. What is the value of $E in Stage 4?

• A) $1,000
• B) $1,800
• C) $2,440
• D) $2,952

---

Definitions:

Terminal Bone Cancer

A stage of bone cancer where the disease is advanced and deemed incurable, focusing treatment on palliation rather than cure.

Biological Irreversibility

A concept referring to processes or changes in living organisms that cannot be reversed, such as growth or death.

War-torn Areas

Regions severely affected by conflict or war, often experiencing significant destruction, displacement of people, and breakdown of society.

Drought-stricken Areas

Refers to regions suffering from prolonged periods of low precipitation, leading to water shortages that affect agriculture, living conditions, and local economies.