Table 9-6: Deposit Expansion Stages

question 221

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 the deposit multiplier?

• A) 0.1
• B) 0.2
• C) 1
• D) 5

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Definitions:

Sales Potential

The maximum total sales of a product or service that could be achieved within a specific market over a given time period.

Follow-Up

Maintaining contact with a customer (or prospect) in order to evaluate the effectiveness of the product and the satisfaction of the customer.

Selling Process

A series of steps taken by sales professionals to identify prospective buyers, communicate value, and close sales transactions.

Customer Relationship Marketing

Customer relationship marketing is a strategy that focuses on building and maintaining long-term, engaging relationships with customers to foster loyalty and repeat business.