Assume That the Required Reserve Ratio Is 10

question 9

Multiple Choice

Assume that the required reserve ratio is 10%. An increase of $1,000 in the banking system's excess reserves may result in a total expansion of new deposits for the banking system as a whole by as much as

• A) $1,000.
• B) $9,000.
• C) $10,000.
• D) $100,000.

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Definitions:

Durkheim

A pioneering French sociologist, Emile Durkheim, known for his foundational work on social solidarity, religion, and the concept of the social fact.

Collective Conscience

The shared beliefs, morals, and attitudes that operate as a unifying force within society.

Latent Function

Unintended and often unrecognized outcomes that contribute to the adjustment or adaptation of a system.

Marxian

Related to the theories and writings of Karl Marx, especially with respect to his analysis of society, politics, and economics.