Table 9-6: Deposit Expansion Stages

question 154

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 $G (the total new required reserves) ?

• A) $1,000
• B) $4,000
• C) $5,000
• D) $6,000

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Definitions:

Parkinsonism

A syndrome characterized by symptoms such as tremors, stiffness, and slow movement, similar to those seen in Parkinson's disease.

Stooped Posture

A forward bending of the spine, often associated with conditions such as osteoporosis, Parkinson's disease, or long-term spinal muscle weakness.

Pill-Rolling

A type of tremor characteristic of Parkinson's disease, resembling the motion of rolling a small object or pill between the thumb and forefinger.

Increased Intracranial Pressure

Elevated pressure within the skull, which can lead to neurological issues and requires immediate medical attention.