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

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Definitions:

Amylase

Amylase is an enzyme produced mainly by the pancreas and salivary glands that helps in the digestion of carbohydrates by breaking down starches into sugars.

Maltose

A disaccharide sugar produced from the enzymatic breakdown of starch that consists of two glucose units.

Substrate

The surface or material on or in which an organism, enzyme, or cell lives or acts, often referring to the substance upon which an enzyme acts.

Chemical Reaction

A process that involves rearrangement of the molecular or ionic structure of a substance, as opposed to a change in physical form or a nuclear reaction.