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

---

Definitions:

Exculpatory Evidence

Evidence that might exonerate a defendant in a criminal proceeding, showing they are not guilty of the crime.

Constitutional Right

A right that is protected and guaranteed by a country's constitution, often relating to the freedoms and liberties of its citizens.

Fair Trial

A legal process in which an individual's rights are respected, including the right to a public hearing, a neutral judge, and a fair judgment.

Criminal Case

A legal action brought by the state against an individual or group for violating criminal law.