Table 9-6: Deposit Expansion Stages

question 47

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 $H (the total loans) ?

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

---

Definitions:

Wrongful Conduct

Actions or behaviors that are illegal or morally incorrect, leading to harm or injury to another party.

Insurance Coverage

Protection provided by an insurance policy against risk or loss, detailing what and how much is covered under specific circumstances.

Theft

The act of unlawfully taking someone else's property with the intent to permanently deprive them of it.

Lost Profits

Income that a business does not receive due to disruptions, such as breaches of contracts or other damages, which could have been earned if the disruption had not occurred.