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

Understand and apply the concept of proportions to solve for unknown quantities.

Apply proportionality to forecast sales or demand in various scenarios.

Analyze cost structures and forecast expenses for businesses based on proportionate costs.

Allocate resources or costs among multiple parties according to specified ratios.

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Definitions:

Genotype

An individual’s genetic endowment, including both expressed and unexpressed genes.

Alleles

Different forms of the same gene, such as the many forms of the eye color gene.

Phenotypes

Observable characteristics or traits of an organism resulting from the interaction of its genotype with the environment.

Receptors

Specific molecules in cells that bind with particular substances, enabling the cell to respond to signals from its external environment.